After Threat of 50% Tariffs, Ontario Backs Off Tariffs on Electricity

The government of Ontario on Tuesday backed off its threat to impose a surcharge on electricity to three U.S. states amid broader trade talks.

In a joint statement from Ontario Premier Doug Ford and Commerce Secretary Howard Lutnick, the two leaders said they had a “productive conversation about the economic relationship between the United States and Canada.”

The two said they would meet in person in Washington on Thursday to discuss a renewal of the U.S.-Mexico-Canada trade agreement ahead of reciprocal tariffs set to go into effect on April 2.

“In response, Ontario agreed to suspend its 25 percent surcharge on exports of electricity to Michigan, New York and Minnesota,” Ford and Lutnick said.

President Trump confirmed the agreement in comments to reporters at the White House.

“As you know, there’s a very strong man in Canada who said he was going to charge a surcharge or a tariff on electricity coming into our country. He has called, and he said he’s not going to do that,” Trump said. “And it would’ve been a very bad thing if he did, and he’s not going to do that, so I respect that.”

President Trump suggested he will hold off on the 50% tariffs on steel and aluminum.

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