Trump Reconsiders Canada Tariffs After Ontario Folds, Suspends Electricity Surcharge

Update (1445ET): After earlier responding to President Trump’s threats with more sound and fury:

“I want to send more electricity” to the US, Ford said during an interview with CNBC, but cutting off power exports remains “a tool in our toolkit.”

Ontario Premier Doug Ford just folded like a broken deckchair and agreed to suspend its surcharge of 25% on exports of electricity to Michigan, New York and Minnesota, Ontario Premier Doug Ford says in a post on X.

Today, United States Secretary of Commerce and Premier of Ontario Doug Ford had a productive conversation about the economic relationship between the United States and Canada.

Secretary Lutnick agreed to officially meet with Premier Ford in Washington on Thursday, March 13 alongside the United States Trade Representative to discuss a renewed USMCA ahead of the April 2 reciprocal tariff deadline.

In response, Ontario agreed to suspend its 25 per cent surcharge on exports of electricity to Michigan, New York and Minnesota.

As a reminder, this was not earth-shattering as Minnesota and Michigan imported about 1% of its power from Canada in 2024, and less than half of that came from Ontario, according to the region’s grid operator, Midcontinent Independent System Operator. New York imported about 4.4% of its total electricity from the country in 2023, according to Bloomberg calculations.

The response in market was immediate with stocks ramping to the highs of the day…

President Donald Trump said he was reevaluating plans to double steel and aluminum tariffs on Canada to 50% after Ontario announced it would suspend a 25% surcharge on electricity sent to the US.

“I’m looking at that, but probably so,” Trump told reporters Tuesday when asked if the deescalation would lead him to back down on his tariff threat.

“I’ll let you know about it.”

* * *

Just when you thought it was safe to dip your toe back in the growth-challenged markets, President Trump took to Truth Social and unleashed a retaliatory strike against Canada (more specifcally Ontario) for its ongoing tariffs (and electricity price hike)… (emphasis ours)

Based on Ontario, Canada, placing a 25% Tariff on “Electricity” coming into the United States, I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD.

This will go into effect TOMORROW MORNING, March 12th.

Also, Canada must immediately drop their Anti-American Farmer Tariff of 250% to 390% on various U.S. dairy products, which has long been considered outrageous. I will shortly be declaring a National Emergency on Electricity within the threatened area. This will allow the U.S to quickly do what has to be done to alleviate this abusive threat from Canada.

If other egregious, long time Tariffs are not likewise dropped by Canada, I will substantially increase, on April 2nd, the Tariffs on Cars coming into the U.S. which will, essentially, permanently shut down the automobile manufacturing business in Canada.

Those cars can easily be made in the USA!

The result is that the Canadian dollar dumped…