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Canada Capitulates as Ford Suspends Electricity Surcharge in Latest Tariff Tiff

by | Mar 11, 2025

U.S. Secretary of Commerce Howard Lutnick and Premier of Ontario, Canada Doug Ford will meet in Washington D.C. on Thursday to discuss a “renewed” United States-Mexico-Canada (USMCA) trade deal.

Lutnick and Ford’s upcoming meeting comes after the pair announced they had a “productive conversation about the economic relationship between the United States and Canada” on Tuesday.

“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,” Lutnick and Ford said in a joint statement.

The pair’s meeting in D.C. comes after Ontario quickly reversed its decision to impose a 25 percent surcharge on electricity exports to Michigan, New York, and Minnesota after President Donald Trump threatened to double steel and aluminum tariffs on Canada in response to Ontario’s electricity surcharge.

“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,” Trump said in a Trust Social post Tuesday morning.

Trump also demanded Canada reduce its 390 percent tariff on U.S. dairy products and other “abusive threats,” saying he is prepared to increase tariffs on automobile exports from the country in response.

Hours after Trump’s threat to double steel and aluminum tariffs on Canada, which he said would go into effect on Wednesday, Ford caved and agreed to suspend its 25 percent surcharge on exports of electricity to Michigan, New York and Minnesota.

Lutnick said he was “glad” Ford listened to Trump’s demands.

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Kaitlin Housler is a reporter at The Tennessee Star and The Star News Network. Follow Kaitlin on X / Twitter.
Photo “Commerce Sec. Howard Lutnick” by Sec. Howard Lutnick and “Premier Douglas Howard” by Ontario.ca.

 

 

 

   
This article may be republished only in its entirety and only with proper attribution to State News Foundation.

Written By Kaitlin Housler

Journalist
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