Ontario's government on Tuesday set back the threat of imposing additional charges on electricity on three US provinces amid wider trade talks.
inJoint StatementOntario Prime Minister Doug Ford and Commerce Executive Director Howard Lutnick said the two leaders had “a productive conversation about the economic relationship between the United States and Canada.”
The pair said they will meet in person in Washington on Thursday ahead of mutual tariffs scheduled to take effect on April 2.
“In response, Ontario has agreed to suspend a 25% surcharge for electricity exports to Michigan, New York and Minnesota,” Ford and Ratnick said.
President Trump on Tuesday cited the decision to charge Ontario's electricity exports by threatening to double Canada's planned steel and aluminum tariffs starting Wednesday.
A White House spokesman confirmed that Trump will no longer track the threat, but previously announced that a 25% tariff on steel and aluminum imports had been announced.
“President Trump has once again used the world's highest and largest leverage of the US economy to bring victory to Americans,” White House spokesman Kush Desai said in a statement.
Trump said Ford was a “gentleman” in his meeting with the administration.
US in 2024More steel and aluminum importedMore from Canada than any other country.
Trump also pointed to plans his administration would threaten additional tariffs on Canada in the coming weeks and impose mutual tariffs on all countries with US product obligations starting April 2. These included tariffs on cars that Trump claimed was “permanently shutting down Canadian car manufacturing.”
Earlier this month, the president announced a 25% tariff on imports from Canada and Mexico, but he announced a one-month exemption for auto parts and other goods that fall under the US-Canada trade agreement signed in 2020 during his first term.
Uncertainty over Trump's tariff plans has led to a slump in the stock market, and the president has not ruled out the possibility of a recession this year.
The market was temporarily rebounded on Tuesday, but again finished well in red. The Dow Jones fell 478 points or 1.13% that day.
– Updated at 4:22pm
