Ontario Suspends Electricity Surcharge Amid Tariff Tensions

Ontario has suspended a 25% surcharge on electricity exported to the U.S. after productive talks with U.S. officials amidst ongoing tariff debates. Premier Doug Ford warned of potential power cuts if U.S. tariffs persist, highlighting strained economic relations.


Ontario Suspends Electricity Surcharge Amid Tariff Tensions

The future Prime Minister of Canada, Mark Carney, expressed his firm decision to give a "maximum impact" response to the tariffs imposed by the United States government, led by President Donald Trump. This action is seen as a protective measure for jobs and the economy in Canada.

Carney emphasized that the tariffs imposed by President Trump represent a direct attack on Canadian workers, families, and businesses. Despite his interest in strengthening trade relations with the United States, the future Prime Minister of Canada warned that he would take significant action if necessary to safeguard the interests of Ontario and Canada.

In response to the situation, Ontario decided to suspend a 25% surcharge applied to electricity exported to three U.S. states (Michigan, New York, and Minnesota) after constructive dialogue between Provincial Premier Doug Ford and U.S. Secretary of Commerce Howard Lutnick. This comes amid trade tensions between the two countries, mainly due to tariffs imposed by Trump's government on Canadian products like steel and aluminum.

Despite the suspension of the surcharge, Ford did not hesitate to state that he would be willing to cut electricity supply if tariff policies that harm Canadian families continued. Donald Trump responded by announcing that if Canada imposes retaliatory tariffs, the United States would respond equivalently, increasing the amount in proportion to what the Canadian government imposes.

Amid this situation, an official meeting between Doug Ford and Howard Lutnick is expected in Washington on March 13 to address trade issues between the two countries before reciprocal tariffs go into effect on April 2.