Timesdo. Toronto, Canada.- Ontario Premier Doug Ford has made a dramatic reversal after initially announcing a 25% surcharge on electricity exports to the United States, affecting 1.5 million homes and businesses across Minnesota, Michigan, and New York.
His decision came in response to the tariffs imposed by President Donald Trump on Canadian imports, escalating tensions between the two trading partners.
During a press conference on March 10, Ford justified the measure as a way to apply maximum pressure on the U.S., emphasizing that the surcharge would cost American families and businesses up to $400,000 daily, translating to an additional $100 per month on electricity bills.
However, realizing the economic strain this would cause for working-class Americans, he later took to WABC’s Cats & Cosby radio show to express regret and clarify his stance, stating his deep appreciation for the American people after having lived in the U.S. for two decades.
In a swift turn of events, Ford announced a suspension of the proposed surcharge following a discussion with U.S. Commerce Secretary Howard Lutnick.
The two officials are now scheduled to meet on March 13 to renegotiate key aspects of the U.S.-Mexico-Canada free trade agreement (USMCA) before Trump’s April 2 deadline for reciprocal tariffs.
Trump, who had initially labeled Ford’s stance as a serious misstep, later welcomed the Ontario Premier’s decision, describing him as a “strong man” and noting that Canada had reconsidered its approach. The U.S. President had previously enacted a 25% tariff on aluminum and steel, warning that it could be increased to 50% if Canada refused to cooperate.
Ford, who had also terminated a $100 million contract with Elon Musk as part of broader trade retaliation, had warned that he would cut off electricity exports entirely if the situation escalated.
However, with negotiations now underway, Ontario has opted for de-escalation, seeking a diplomatic resolution to the growing trade standoff.
Meanwhile, incoming Canadian Prime Minister Mark Carney has pledged to take a firm stance against the trade war, describing the tariffs as the greatest crisis in our lifetime.
The political and economic implications of these policies continue to unfold as both nations prepare for further negotiations and potential compromises in the coming weeks.