Ontario Premier Doug Ford has withdrawn his threat to impose a 25% surcharge on electricity exports to the U.S., which would have impacted around 1.5 million Americans in states like Michigan, Minnesota, and New York. The move came after President Donald Trump signaled a strong retaliation, escalating already tense economic relations between the two nations.
Before reversing course, Ford warned that he was prepared to cut off electricity exports entirely if the U.S. escalated trade measures, blaming Trump directly for the trade dispute. “I feel terrible for the American people… It’s one person who’s responsible. That’s President Trump,” Ford stated, while vowing continued resistance until U.S. tariffs were fully removed.
Trump’s administration had earlier imposed 25% tariffs on Canadian and Mexican goods, citing concerns over illegal immigration and drug trafficking. In response, Canada entered negotiations that led to a temporary pause on further U.S. tariffs. However, Trump remained critical of Canadian trade practices, calling the country a “tariff abuser” and stating, “We don’t need your Cars, we don’t need your Lumber, we don’t need your Energy.”
He emphasized that any Canadian measures against the U.S. would be met with reciprocal tariffs, writing, “The United States is not going to be subsidizing Canada any longer.”
New Canadian Prime Minister Mark Carney responded firmly, defending Canada’s retaliatory tariffs and stating they will remain in place until the U.S. shows respect. “Donald Trump has put unjustified tariffs on what we build, sell and how we make a living,” Carney said. “We will keep our tariffs on until the Americans show us respect.”
Following Ford’s decision to hold off on the electricity surcharge, White House spokesman Kush Desai noted that Trump’s threat of a 50% retaliatory tariff had influenced Ontario’s retreat. “President Trump has once again used the leverage of the American economy… to deliver a win for the American people,” Desai said.