The premier of Canada’s Ontario, Doug Ford, announced on Tuesday that he was suspending the 25 per cent surcharge on electricity supply after a conversation with the US Commerce Secretary. This comes after he had announced on Monday that his government was charging 25% more for electricity to 1.5 million American homes and businesses in response to Trump’s trade war.
According to the Associated Press, Ford said he and US Commerce Secretary Howard Lutnick have agreed to meet on Thursday in Washington to “discuss a renewed” United States-Mexico-Canada-Agreement ahead of US President Donald Trump’s April 2 reciprocal tariff deadline.
“They call you and they hand over an olive branch, the worst thing I could do as premier of Ontario is ignore him and hang up the phone on him,” Ford he was quoted as saying.
As a result, White House trade adviser Peter Navarro said later Tuesday that Trump reversed his decision to double tariffs on Canadian steel and aluminium, though the federal government still intends to impose a 25 per cent tariff on all steel and aluminium imports starting Wednesday.
Trump said he appreciated Ford’s suspending the surcharge on electricity exports.
“There’s a very strong man in Canada who said he was going to charge a surcharge, or a tariff, on electricity coming into our country. He has called and said he’s not going to do that,” Trump said.
“It would have been a very bad thing if he did. And he’s not going to do that. And I respect that.”
#WATCH | US President Donald Trump says, “As you know, there’s a very strong man in Canada who said he was going to charge a surcharge or a tariff on electricity coming into our country. He has called and said that he’s not going to do that…”
(Source: US Network Pool via… pic.twitter.com/KK3vYwW05i
— ANI (@ANI) March 11, 2025
Trump continued to call Canada as the 51st state, a stance that has continued to anger Canadians. He dismissed the border, saying that it’s an “artificial line that looks like it was done with a ruler.”
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Trump announced earlier Tuesday that he would double planned tariffs on Canadian steel and aluminium from 25 to 50 per cent , escalating the trade dispute with the US’s northern neighbour despite recent stock market turmoil and growing recession concerns. The tariff increase, set to take effect on Wednesday, is in response to the Ontario provincial government’s recent price hike on electricity sold to the United States.
‘Self-Made Recession’
The US president criticised the use of electricity “as a bargaining chip and threat,” warning in a social media post on Tuesday that Canada “will pay a financial price for this so big that it will be read about in history books for many years to come!”
Ford said Trump started this economic war against Canada “unprovoked”. “If a recession does happen it’s a self made recession made by one person. And one person only,” he added as per AP.
Incoming Canadian Prime Minister Mark Carney said Tuesday that his government will maintain the federal government’s initial tranche of tariffs until the United States shows respect and commits to free trade.
