Canada, Mar 12 (V7N) – The Premier of Ontario, Doug Ford, announced on Tuesday that the province has suspended its 25% surcharge on electricity exports to Michigan, New York, and Minnesota. This decision came after a meeting with U.S. Secretary of Commerce Howard Lutnick, during which they discussed the ongoing economic relationship between the two countries. The two leaders agreed to meet in Washington on Thursday to continue discussions on a trade agreement.

The move follows a reversal of tariffs between the U.S. and Canada. On Tuesday morning, U.S. President Donald Trump had threatened to double tariffs on steel and aluminum imports from Canada, targeting Ontario’s surcharge on electricity exports. However, Trump later backtracked, with White House senior trade advisor Peter Navarro confirming the cancellation of the tariff increase.

Premier Ford had publicly criticized Trump’s trade tactics earlier, calling the tariff increase an “unprovoked attack” and emphasizing that Ontario would not back down. Ford explained that the electricity surcharge, which could increase U.S. electricity bills by about $69 USD, was a response to Trump's tariffs on Canada.

Ontario is Canada’s second-largest energy producer, and its electricity exports play a significant role in neighboring U.S. states. Ford had previously warned that the energy flow could be cut off entirely if the tariffs against Canada continued.

Meanwhile, leaders in Michigan and Minnesota reacted to the trade dispute, with Michigan’s Public Service Commission stating that it was not aware of any significant impact from Ontario’s surcharge. Minnesota electricity companies, while acknowledging potential future risks, indicated that the surcharge would not have a major effect on current bills.

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