Canada Reverses Electricity Export Charge Following Trump’s Tariff Threat

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Ontario Premier Doug Ford swiftly reversed his decision to impose a 25% surcharge on electricity exports to the United States just hours after President Donald Trump announced new tariffs on Canadian steel and aluminum. Initially introduced as a retaliatory measure against Trump’s trade policies, Ford’s plan was short-lived as economic pressure mounted on both sides of the border.  

 

Ford, the conservative leader of Ontario, took to X to explain that he had a “productive conversation” with U.S. Secretary of Commerce Howard Lutnick regarding the economic relationship between Canada and the United States. Following this discussion, Ford agreed to suspend the surcharge, which would have impacted electricity exports to Michigan, New York, and Minnesota.  

 

Lutnick has arranged a meeting with Ford and the U.S. Trade Representative in Washington, D.C., on Thursday to discuss revisions to the United States-Mexico-Canada Agreement (USMCA), the trade deal governing economic exchanges between the three North American nations. In light of this development, Ford agreed to back down on his electricity surcharge.

 

His reversal came shortly after Trump ramped up pressure, threatening to double the 25% tariffs on Canadian steel and aluminum, declare a national emergency for areas affected by the surcharge, and impose additional tariffs on Canadian automobiles that could "essentially, permanently shut down the automobile manufacturing business in Canada." Trump also reiterated his desire to bring Canada into the U.S. as its 51st state.  

 

Had the electricity surcharge taken effect, Ontario residents could have seen their electrical bills rise by as much as $100 per month, Ford warned. Trump, in response to Ford’s initial move, issued a forceful statement on Truth Social: “They will pay a financial price for this so big that it will be read about in History Books for many years to come!”  

 

Ford originally announced the surcharge on Monday as retaliation against Trump’s proposed 25% tariff on Canadian goods and a 10% tariff on energy exports. Although Trump had delayed implementing these tariffs, Ford’s aggressive stance was meant to preemptively counteract the potential economic damage.  

 

Ford has consistently opposed Trump’s trade policies, arguing they would disproportionately harm Canada’s already fragile economy. He has even suggested taking more extreme measures, including halting energy exports to the United States entirely. “I can’t, for the life of me, figure out why this guy’s attacking his closest neighbors, allies and friend. A tariff on Canada is a tax on Americans,” Ford said last week during a press conference.  

 

Following Ford’s decision to retract the surcharge, Trump indicated that he would likely reconsider his proposed 50% increase on tariffs for Canadian aluminum and steel. “I’m looking at that, but probably so — I’ll let you know about it,” Trump told reporters on Tuesday.  

 

The situation underscores the volatility of U.S.-Canada trade relations under Trump’s administration and highlights the delicate balancing act required to navigate cross-border economic policies.

 

Based on a report by The Independent  2025-03-12

 

 

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