Canadian province Ontario has suspended its 25% surcharge on electricity exports to the US after talks between US Commerce Secretary Howard Lutnick and Ontario Premier Doug Ford.
The talks followed after President Donald Trump announced to raise tariffs on Canadian steel and aluminium by 25%, bringing the total to 50%.
On 10 March 2025, Ontario Premier Doug Ford announced a surcharge targeting US states such as Michigan, New York, and Minnesota that depend on Ontario’s power supply.
In response, Trump, in a post on Truth Social, criticised Canada’s high tariffs on various US dairy products and hinted at declaring a national emergency over the electricity dispute.
To ease trade tensions, Premier Ford and Secretary Lutnick will meet in Washington, DC on 13 March 2025. Both Premier Ford and Secretary Lutnick released a joint statement on their official X accounts.
Secretary Lutnick and Premier Ford agreed to convene in Washington on 13 March 2025 alongside the United States Trade Representative to discuss a renewed USMCA ahead of the 2 April 2025 reciprocal tariff deadline. In response, Ontario agreed to suspend its 25% surcharge on electricity exports to Michigan, New York and Minnesota.
Earlier, Trump signed executive orders on 6 March 2025 to halt tariffs on imports from Canada and Mexico under the United States-Mexico-Canada Agreement (USMCA). The USMCA, which entered into force on 1 July 2020, allows goods to move tariff-free between the US, Canada, and Mexico if made in North America or significantly transformed there using foreign components.
