Canada backed down from its threat to impose a 25% surcharge on electricity coming into the Unites States after President Donald Trump said he would double tariffs on Canada’s steel and aluminum products.
Ontario Premier Doug Ford said Tuesday that he had agreed to suspend the electricity import surcharge after speaking with Commerce Secretary Howard Lutnick, which the two called a “productive conversation” in a joint statement.
Ford and Lutnick said they plan to meet on Thursday to discuss renewing the trade deal between the United States, Canada, and Mexico that Trump signed during his first term ahead of April 2, when the United States plans to impose reciprocal tariffs on almost every country.
Earlier on Tuesday, Trump ripped Canada in a post on Truth Social, saying new 50% tariffs on steel and aluminum would take effect Wednesday morning.
Ontario supplies electricity to Minnesota, New York, and Michigan. Trump said he would declare a national emergency for the areas Ontario is targeting with the electricity surcharge.
“Why would our Country allow another Country to supply us with electricity, even for a small area? Who made these decisions, and why? And can you imagine Canada stooping so low as to use ELECTRICITY, that so affects the life of innocent people, as a bargaining chip and threat? They will pay a financial price for this so big that it will be read about in History Books for many years to come!” Trump posted.
He also threatened to “substantially increase” tariffs on Canadian cars next month unless Canada drops its “other egregious, long time Tariffs.” He demanded Canada drop its “Anti-American Farmer Tariff” on various U.S. dairy products, which he said has “long been considered outrageous.”
Trump said Canada pays “very little” for national security and relies on the United States for military protection.
“We are subsidizing Canada to the tune of more than 200 Billion Dollars a year. WHY??? This cannot continue,” Trump said.
Trump said the “only thing that makes sense” is for Canada to become “our cherished Fifty First State.” The president added that the country’s “brilliant anthem, ‘O Canada'” can continue to play representing a “great and powerful state.”
Previously, Ford had vowed to maintain an aggressive approach.
“I will not hesitate to increase this charge. If the United States escalates, I will not hesitate to shut the electricity off completely,” Ford said at a news conference in Toronto.
Mark Carney, who was just elected on Sunday to replace Justin Trudeau as party leader and Canada’s prime minister also said Canada would keep tariffs in place until Americans “show us respect.”
“President Trump’s latest tariffs are an attack on Canadian workers, families, and businesses,” Carney posted on X.
“My government will ensure our response has maximum impact in the US and minimal impact here in Canada, while supporting the workers impacted. My government will keep our tariffs on until the Americans show us respect and make credible, reliable commitments to free and fair trade,” Carney said.
Trump has imposed tariffs on Canada, Mexico, and China to pressure them to stop the flow of deadly drugs like fentanyl into the United States.
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