Ontario premier backs down, suspends electricity surcharge on US after Trump tariff threats on Canadian metals

The premier of Ontario, Canada, Doug Ford, has agreed to suspend its 25% surcharge on electricity exported to Michigan, Minnesota and New York.

Ford and U.S. Secretary of Commerce Howard Lutnick issued a joint statement on the matter Tuesday, saying the two of them had a productive conversation about the economic relationship between the U.S. and Canada.

“Secretary Lutnick agreed to officially meet with Premier Ford in Washington on Thursday, March 13, alongside the United States Trade Representative, to discuss a renewed USMCA [United States-Mexico-Canada Agreement] ahead of the April 2 reciprocal tariff deadline,” Ford shared in a post on X. “In response, Ontario agreed to suspend its 25 percent surcharge on exports of electricity to Michigan, New York and Minnesota.”

The agreement came after President Donald Trump threatened to impose further tariffs on Canadian steel, aluminum, electricity and vehicles on Tuesday.

TRUMP THREATENS FURTHER TARIFFS ON CANADIAN STEEL, ALUMINUM, ELECTRICITY, VEHICLES

Trump responded to Ford’s decision by reversing a threat to double a 25% tariff to 50% on Canadian steel and aluminum.

“After President Trump threatened to use his executive powers to retaliate with a colossal 50 percent tariff against Canada, Ontario Premier Doug Ford spoke with Secretary Lutnick to convey that he is backing down on implementing a 25 percent charge on electricity exports to the United States,” White House spokesman Kush Desai said. “President Trump has once again used the leverage of the American economy, which is the best and biggest in the world, to deliver a win for the American people.”

Still, Desai added that Trump still plans to impose a 25% tariff on steel and aluminum products, which will go into effect for Canada and other trading partners at midnight, March 12.

In response to Ontario placing a 25% tariff on electricity coming into the U.S., Trump said he instructed Lutnick to add another 25% tariff on all steel and aluminum coming into the United States from Canada. The new 50% tariff was scheduled to go into effect Wednesday morning.

Trump made the announcement on Truth Social, deeming Canada “ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD.” 

CANADIANS FEEL ‘UNDER ECONOMIC ATTACK,’ FRUSTRATION WITH US OVER TRUMP TARIFFS, ANNEXATION TALK: AMBASSADOR

Ford imposed 25% tariffs on electricity exports from the Canadian province to the U.S. states of Michigan, New York and Minnesota on Monday.

Speaking to reporters in front of a podium that read “Canada is not for sale,” Ford said the surcharge would cost families and businesses in those states up to $400,000 every day. On average, Ontario’s premier said it would add about $100 per month to “the bills of hardworking Americans.”

TRUMP SAYS HE PAUSED SOME TARIFFS TO ‘HELP’ MEXICO AND CANADA TO A ‘CERTAIN EXTENT’

“Let me be clear: I will not hesitate to increase this charge,” Ford said at the time of the announcement. “If necessary, if the United States escalates, I will not hesitate to shut the electricity off completely. Believe me when I say I do not want to do this. I feel terrible for the American people because it’s not the American people who started this trade war. It’s one person who’s responsible. That’s President Trump.”

In a follow-up post later on Tuesday, Trump asked, “Why would our Country allow another Country to supply us with electricity, even for a small area?””Who made these decisions, and why,” Trump added. “And can you imagine Canada stooping so low as to use ELECTRICITY, that so affects the life of innocent people, as a bargaining chip and threat? They will pay a financial price for this so big that it will be read about in History Books for many years to come!”

Fox Business’ Danielle Wallace contributed to this report.