Ontario Premier Doug Ford has reversed his decision to impose a 25% surcharge on electricity exports to U.S. states, just hours after defending the policy as a necessary countermeasure in Canada’s trade war with Donald Trump. In a statement on social media, Ford said he had a “productive conversation” with U.S. Commerce Secretary Howard Lutnick and agreed to suspend the planned tax hike ahead of further trade negotiations.
Trump, who had strongly opposed the surcharge, welcomed the reversal, calling Ford a “strong man” and claiming the premier had personally called him to confirm the change. “It would’ve been a very bad thing if he did, and he’s not going to, so I respect that,” Trump told reporters. The U.S. president had previously threatened to double tariffs on Canadian steel and aluminum to 50% if Canada moved forward with its electricity tax.
Before backing down, Ford had warned that if the U.S. escalated further, he would be prepared to “shut the electricity off completely” to 1.5 million American customers in Michigan, New York, and Minnesota. He also apologized to American citizens for the potential impact of the dispute, blaming Trump for creating an “absolute mess” and “chaos” in North American trade relations.
With tensions still high, incoming Canadian Prime Minister Mark Carney has vowed to continue resisting Trump’s trade policies, calling them “the greatest crisis in our lifetime” for Canada. The two countries are now set to enter new negotiations on the U.S.-Mexico-Canada trade agreement before Trump’s next tariff deadline on April 2.
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