Ontario Premier Doug Ford has announced the suspension of the province’s 25 percent surcharge on electricity exports to Michigan, New York, and Minnesota. This decision follows a conversation between Ford and U.S. Secretary of Commerce, Howard Lutnick. The province stated that Lutnick has agreed to meet with Ford on Thursday, along with the United States Trade Representative, to discuss a renewed USMCA ahead of the April 2 reciprocal tariff deadline.
Ford said that he would be accompanied by Federal Minister of Finance Dominic LeBlanc for the meeting. “Lutnick offered an olive branch” by agreeing to sit down with Ford and the full trade administration, the Premier explained. “They understand how serious we are about the electricity and the tariffs, and rather than going back and forth with threats, we have both agreed that cooler heads will prevail. We need to sit down and move this forward,” Ford told reporters on Tuesday.
The White House confirmed that U.S. President Donald Trump would backtrack on his plans to double steel and aluminum tariffs. Initially, tariffs were set to increase from 25 percent to 50 percent starting at midnight Wednesday, but they will remain at 25 percent. Ford expressed confidence that President Trump would back down on these tariffs, though he cautioned, “If he continues with the aluminum and the steel, I just got off the phone with Minister LeBlanc, and they will respond dollar for dollar, tariff for tariff.”
Earlier on Tuesday, Ford had voiced his commitment to responding appropriately to President Trump’s tariff escalation. Speaking on MSNBC, moments after Trump’s announcement, Ford declared, “We will not back down. We will be relentless. I will respond appropriately on the electricity, stay tuned.” Ford also expressed his disappointment, saying, “I apologize to the American people that President Trump decided to have an unprovoked attack on our country, on families, on jobs, and it’s unacceptable. Let’s work together, let’s get to the table if he has issues, and let’s sort this out.”
On Monday, Ontario implemented the surcharge on electricity exported to three U.S. states, affecting 1.5 million homes. Ford has hinted that he could increase this surcharge further if tensions with the U.S. escalate. However, he emphasized that he hopes to avoid such measures. “I won’t hesitate to do that, that’s the last thing I want to do. … There’s one person to be blamed, and that’s President Trump,” Ford responded in an interview with CNBC.
Trump responded to Ford’s previous statements, accusing the Premier of making an “egregious and insulting comment” by threatening to cut off electricity supplies to U.S. states. White House Press Secretary Karoline Leavitt stated, “The President saw Premier Doug Ford make an egregious and insulting comment, threatening to shut down electricity for the American people, for hardworking American families. He made that threat, the President saw that and has an obligation and a responsibility to respond.”
Ford has also indicated that Ontario’s retaliatory measures, including removing American alcohol from the Liquor Control Board of Ontario shelves and banning American companies from government procurement contracts, will remain in effect until all U.S. tariffs on Canadian goods are lifted.
