Canada Drops 25% Electricity Tariff Following Trump’s Retaliation Threats

Ontario Premier Doug Ford gives remarks at a press conference in Queen’s Park on March 10, 2025 in Toronto, Canada. Ford announced that the provincial government applied a 25 percent surcharge on all electricity exports to the United States as part of retaliatory tariff measures

Following President Donald Trump’s threats to increase steel and aluminum tariffs on Canada to 50%, Ontario Premier Doug Ford suggested on Tuesday that Canada is caving, announcing that he reached an agreement with the U.S. commerce secretary to halt the 25% tax on power imports into the U.S.

However, ironically, Ford made opposite declarations earlier this week — painting Ontario as a strong force that won’t back down.

“President Trump’s tariffs are a disaster for the U.S. economy,” Ford said in a statement on Monday. “They’re making life more expensive for American families and businesses. Until the threat of tariffs is gone for good, Ontario won’t back down. We’ll stand strong, use every tool in our toolkit and do whatever it takes to protect Ontario.”

The U.S.-Mexico-Canada free trade agreement will be renewed on Thursday, Ford and U.S. Commerce Secretary Howard Lutnick announced in a statement, released with Lutnick and shared on X, ahead of Trump’s self-imposed April 2^nd “reciprocal tariff deadline.”

“In response, Ontario agreed to suspend its 25 per cent surcharge on exports of electricity to Michigan, New York and Minnesota,” Ford said.

Trump stated on Tuesday afternoon that he was now considering lowering tariffs on Canada in follow-up statements at the White House. “Probably so,” he replied when asked if he would consider lowering them.

“I’ll let you know” he continued, whether 50% tariffs on Canada are going into effect — according to NBC News.

In reaction to Ontario imposing a 25% tariff on electricity exported to the United States, Trump said on Truth Social on Tuesday that steel and aluminum tariffs would increase from 25% to 50% — beginning on Wednesday.

In addition, Trump demanded that Canada remove its high taxes on American dairy products and warned to “substantially increase” tariffs on vehicles coming into the U.S. unless it removed “other egregious, long time tariffs.”

“Canada has been ripping us off for years on lumber and on dairy products,” Trump said in an Oval Office address, citing Canada’s roughly 250% tariff on U.S. dairy exports to the U.S.

Trump also asserted that the vehicle tariffs would “essentially shut down the automobile manufacturing business in Canada.”

“The only thing that makes sense is for Canada to become our cherished Fifty First State,” Trump wrote. “This would make all Tariffs, and everything else, totally disappear.”

Late on Monday, Trump also referred to Canada as a long-standing “tariff abuser” in another post on Truth Social.

“The United States is not going to be subsidizing Canada any longer,” Trump asserted, adding: “We don’t need your Cars, we don’t need your Lumber, we don’t your Energy, and very soon, you will find that out.”

Mark Carney, Canada’s recently appointed prime minister, later described Trump’s threats as “an attack on Canadian workers, families, and businesses.”

“My government will ensure our response has maximum impact in the U.S. and minimal impact here in Canada, while supporting the workers impacted,” Carney stated.

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