On Tuesday, the Ontario government withdrew its plan to impose a 25% surcharge on electricity exports to Michigan, New York, and Minnesota amid ongoing trade discussions with the U.S.
In a joint statement, Ontario Premier Doug Ford and U.S. Commerce Secretary Howard Lutnick described their conversation as “productive” and confirmed they would meet in Washington on Thursday to discuss the renewal of the U.S.-Mexico-Canada trade agreement before reciprocal tariffs take effect on April 2.
President Trump acknowledged the decision, telling reporters that Ford had assured him the surcharge would not be implemented. “It would’ve been a very bad thing if he did, and he’s not going to do that, so I respect that,” Trump said.
Earlier that day, Trump had threatened to double tariffs on Canadian steel and aluminum in response to Ontario’s surcharge plan. While a White House official did not immediately comment on whether those tariffs would still proceed, Trump suggested he was reconsidering. “Now I’m looking at that, but probably so. He was a gentleman,” he said.
The Trump administration is set to impose 25% tariffs on steel and aluminum imports beginning Wednesday, with Trump directing Lutnick to raise tariffs on Canadian metals to 50%. Canada was the largest supplier of steel and aluminum to the U.S. in 2024.
Additionally, Trump has threatened further tariffs on Canadian goods, including automobiles, as part of a broader strategy to introduce reciprocal trade measures starting April 2.
The uncertainty surrounding Trump’s tariff policies has contributed to stock market volatility, and the president has not ruled out the possibility of an economic downturn in the near future.
