President Donald Trump announced a national emergency on electricity and raised tariffs on Canadian aluminum and steel from 25% to 50% after Canada imposed retaliatory tariffs. He also threatened to shut down Canada’s auto sector unless the country became the 51st U.S. state.

The stock market reacted sharply, dropping over 500 points amid recession fears. Trump’s tariffs take effect Wednesday in response to Ontario Premier Doug Ford’s 25% tariff on Canadian electricity exports to U.S. states. Ford warned he may cut off electricity entirely if tensions escalate.

Trump lashed out on Truth Social, accusing Canada of using electricity as a “bargaining chip” and promising severe financial consequences. Many Northeastern states rely on Canadian energy, making the dispute highly consequential.

The president spent much of Tuesday hammering America’s northern neighbor.

He also warned more auto tariffs are coming on April 2nd. He wants Canada to drop its retaliatory tariffs on U.S. dairy and agricultural products.

‘If other egregious, long time Tariffs are not likewise dropped by Canada, I will substantially increase, on April 2nd, the Tariffs on Cars coming into the U.S. which will, essentially, permanently shut down the automobile manufacturing business in Canada,’ he said.

He closed with an offer to drop all tariffs if Canada agrees to become the 51st state of the United States.

‘The only thing that makes sense is for Canada to become our cherished Fifty First State. This would make all Tariffs, and everything else, totally disappear,’ he wrote.