Ontario Suspends 25% Electricity Surcharge to New York, Michigan, Minnesota After Trump's Steel and Aluminum Tariff Threat

Ontario Premier Doug Ford announced a 25% surcharge on electricity exports to the United States, in retaliation to President Donald Trump's imposition of tariffs on Canadian goods and energy. The surcharge targets electricity supplied to New York, Michigan, and Minnesota, affecting approximately 1.5 million homes and businesses and adding around $100 per month to their bills. Ford's decision came after Trump announced a 25% tariff on Canadian goods and a 10% tariff on energy, prompting Ford to warn that he would not hesitate to shut off electricity completely if the U.S. escalates further. This move is part of Ontario's strategy to apply maximum pressure on the U.S. to remove its tariffs. Despite moving forward with the majority of tariffs on Canada, Trump announced a 30-day reprieve for the auto sector and all goods under the USMCA agreement. In response to Ford's announcement, President Trump threatened to double tariffs on Canadian steel and aluminum imports from 25% to 50%, citing Ontario's electricity surcharge as the reason. Trump made this announcement on Truth Social and also suggested that Canada should become the 51st state of the U.S. However, following discussions between Ford and U.S. Commerce Secretary Howard Lutnick, Ontario agreed to suspend the 25% surcharge on electricity exports to the specified U.S. states. Trump subsequently backed off from his threat to double the tariffs on Canadian steel and aluminum, maintaining them at 25%. This development came after a series of tariff escalations and de-escalations between the two nations, reflecting ongoing trade tensions. White House trade adviser Peter Navarro confirmed the reversal, and incoming Canadian Prime Minister Mark Carney stated that Canada would keep its tariffs in place until the U.S. commits to free trade.