Ontario has suspended a 25% surcharge on U.S. electricity exports after providing the “Olive Branch” in the form of a meeting for top Trump administration officials to discuss the escalating trade war, Prime Minister Doug Ford said.
In a joint statement posted on social media, Ford said Tuesday afternoon there was a “productive conversation” with U.S. Secretary of Commerce Howard Lutnick about economic relations between the US and Canada.
Speaking to reporters later, Ford said he offered to meet Lutnick in Washington, D.C., and offered to discuss the issue in the wake of repeated threats from US President Donald Trump and repeated threats from Canadian annex. Ford is scheduled to travel to the US Capitol with Federal Finance Minister Dominique LeBlanc for the meeting on Thursday.
In return, Ontario has agreed to temporarily suspend 25% additional charges for electricity exports to Michigan, New York and Minnesota.
“The negotiations we have are that both parties need to be heated and the temperature drops,” Ford said.
“They understand how serious we are about electricity and tariffs and agreed that rather than going back and forth and threatening each other, a cool head wins. We need to sit down and move forward with this.”
A day after Ontario announced the additional fees for Ontario-generated electricity purchased, Ontario Premier Dougford said he temporarily reversed his decision and agreed to “make the cooler heads general.”
Ford previously announced plans to charge additional charges on Ontario-generated electricity as a retaliation measure against US tariffs. Ontario is empowering nearly 1.5 million US-based customers.
The Prime Minister said taxation is a tool that can be used in the future.
Trump says he respects his decision to suspend additional fees
Meanwhile, Trump discussed Ford’s decision with reporters outside the White House shortly after it was announced.
“You know, there’s a very strong guy in Canada. He says he’s going to charge an extra charge or duties on electricity coming to our country. He called and said he wouldn’t.
“We were treated very unfairly by Canada. We were treated very unfairly by Mexico,” he added.
Trump was asked if Canada would withdraw tariffs following the decision by Food to suspend additional charges.
“Maybe, that’s right. He was a gentleman.”
Following that question, when asked specifically Wednesday whether the US would still impose a 50% tariff on Canadian steel and aluminum products, Trump said:
The White House later confirmed that these tariffs would be reverted to 25%, but they still go into effect.
The development came after Trump spent his mornings in Ontario and Canada, including a repeated overture on more tariff threats and violating Canadian territorial sovereignty.
In a series of meandering posts to his true social platform, Trump said Ontario “is going to pay a huge financial price for this and it will be read in history books for years to come!”
He accused Canada of “low enough to use electricity, affecting the lives of innocent people, and as a tip and threat to negotiate.
At a White House briefing, news chief Caroline Leavit said he has yet to say President Donald Trump has been nominated as Prime Minister Mark Carney before criticising Ontario’s electricity export surcharge imposed by Premier Doug Ford in the face of US tariffs.
He also declared a “national electricity emergency” within the US region affected by Ontario’s electricity collection, likely referring to New York, Michigan and Minnesota. Trump then began a long rant about the annexation of the United States, annexing Canada, making it “our precious 50 first states.”
He similarly threatened to “substantially increase” tariffs on car imports on April 2, but predicted that Trump would “close Canadian car manufacturing forever.”
When asked if he believes the US will return to Trump’s latest threat in light of this week’s meeting, Ford said, “We have to bounce it off the president, but I’m sure he’ll pull back.” However, Ford quickly warned that he could not speak for American officials.
Trade war volley continues
Bill Slater, president of Sault St., United Steelworkers Local 2724. Marie told CBC News that uncertainty about Trump’s demands has led to a disrupted workforce.
“Now, it’s now the blue-collar workers who look at both sides of the border to see where their next meal comes from,” he said. “People like Trump, their portfolio may be a little smaller, but I’m sure he’ll eat the same thing for dinner.”
Trump launched a trade war with Canada shortly after taking office despite years of economic, cultural and military alliances between his neighbours. His administration says it will impose a 25% tariff on most Canadian goods, and at the same time provide a 10% charge on energy, while also providing a change in the legitimacy of doing so.
Amid a massive response in the stock market, Trump temporarily suspended the implementation of tariffs on Canada’s exports “compliant” with the terms of the Canada-Mexico Agreement (CUSMA) until April 2nd.
The Trump administration’s policy on Canadian goods comes despite Kasma being the free trade agreement that was once called “the greatest and most important trade agreement ever.”
Both Ontario and the federal government say they will proceed with retaliation until tariffs are completely off the table.
Ontario removed American liquor from LCBO shelves and banned US businesses from government procurement contracts, but the federal government imposed the first retaliatory tariffs on US goods worth $30 billion.
Ford is also urging other states that send more than 4 million barrels of oil per day to the south of the border, and Saskatchewan, which provides important potash for U.S. agriculture, to consider imposing export taxes on those goods.
Alberta Prime Minister Daniel Smith and Saskatchewan Prime Minister Scott Moe have previously refused to consider the move.
