The premier of Canada’s largest province has announced that he will be dropping energy tariffs after a discussion with United States Secretary of Commerce Howard Lutnik. Ontario Premier Doug Ford announced on Tuesday—less than 24 hours after imposing the tariff—that the 25 percent electricity export surcharge would be suspended.
Ford took to X (formerly Twitter) to make the announcement after several days of back-and-forth threats over a 25 percent tariff to be imposed on many Canadian goods announced by President Donald J. Trump earlier this month. Notably, Ford’s decision to scrap a 25 percent tax on electricity sold to the United States follows a Tuesday escalation by Trump in which he announced an additional 25 percent tariff on Canadian steel and aluminum.
Ontario provides electricity to around 1.5 million homes in the United States, leading to President Trump stating he would declare a National Emergency on Electricity in the areas potentially threatened by any kind of shutdown. Additionally, Trump threatened to use tariff measures to cripple the entire Canadian auto industry.
According to Ford, he and Lutnick agreed to meet in Washington, D.C., on March 13 to discuss trade relations before President Trump’s reciprocal tariff policy comes into full effect on April 2. Ford’s announcement that he will scrap the electricity tariff comes as a significant victory for the Trump administration on the same day Ukraine announced it would agree to a U.S.-brokered 30-day ceasefire with Russia, potentially leading to the end of the more than three-year-old conflict.
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Please see a joint statement from United States Secretary of Commerce Howard Lutnick and myself:
Today, United States Secretary of Commerce @howardlutnick and Premier of Ontario Doug Ford had a productive conversation about the economic relationship between the United States…— Doug Ford (@fordnation) March 11, 2025