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Ontario Premier Walks Back 25% Surcharge Threat On Electricity To NY, Other States

Just one day after announcing a 25% surcharge on electricity exports to three US states–including New York–Ontario Premier Doug Ford has agreed to suspend the fee following talks with US officials.

President Donald Trump (left) and Ontario Premier Doug Ford.

President Donald Trump (left) and Ontario Premier Doug Ford.

Photo Credit: The White House/Wikimedia Commons user Doug Ford

Ford and US Commerce Secretary Howard Lutnick announced Tuesday, March 11, that they had agreed to meet in Washington, DC on Thursday, March 13, alongside the US Trade Representative, to discuss the future of the U.S.-Mexico-Canada Agreement (USMCA) ahead of an April reciprocal tariff deadline.

“In response, Ontario agreed to suspend its 25 percent surcharge on exports of electricity to Michigan, New York and Minnesota,” Ford posted on X.

The reversal came a day after Ford declared that Ontario may cut off the electric supply altogether if President Donald Trump imposed new tariffs on Canadian goods.

“If the United States escalates, I will not hesitate to shut the electricity off completely,” Ford said at a press conference Monday. He blamed President Donald Trump for what he called an unnecessary trade war, adding that the surcharge would cost American families and businesses an extra $100 per month.

Tuesday’s agreement came after Trump threatened to impose additional tariffs on Canadian steel, aluminum, electricity, and vehicles on Tuesday.

The president questioned why the United States relies on Canada for electricity production, in a post on Truth Social Tuesday.

"Why would our Country allow another Country to supply us with electricity, even for a small area? Who made these decisions, and why?" Trump wrote. 

"And can you imagine Canada stooping so low as to use ELECTRICITY, that so affects the life of innocent people, as a bargaining chip and threat? They will pay a financial price for this so big that it will be read about in History Books for many years to come!"

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