After a conversation with the United States Secretary of Commerce, Ontario Premier Doug Ford has agreed to suspend the surcharge on electricity exports.
On Monday, Ford announced his plan to add a 25 per cent surcharge on all electricity exports to the U.S.
In response, U.S. President Donald Trump announced via his Truth Social account that the planned 25 per cent tariffs on aluminium and steel will increase to 50 per cent starting Wednesday.
"I will shortly be declaring a National Emergency on Electricity within the threatened area. This will allow the U.S to quickly do what has to be done to alleviate this abusive threat from Canada," Trump said in the social media post.
Ford announced on social media that he had a "productive conversation" with United States Secretary of Commerce Howard Lutnick and has agreed to suspend the surcharge.
"Secretary Lutnick agreed to officially meet with Premier Ford in Washington on Thursday, March 13 alongside the United States Trade Representative to discuss a renewed USMCA ahead of the April 2 reciprocal tariff deadline. In response, Ontario agreed to suspend its 25 per cent surcharge on exports of electricity to Michigan, New York and Minnesota," said a joint statement from Ford and Lutnick.
Late Tuesday afternoon, Reuters reported that a Whitehouse spokesperson stated the planned 25 per cent tariff on steel and aluminium will go forward on Wednesday.
Trump also claimed he plans to raise tariffs on cars, starting April 2, unless the electricity surcharge and other tariffs are dropped immediately. He specifically mentioned a tax on different agricultural products.
His social media post ended with a call for Canada to once again become the 51st U.S. state.
"This would make all tariffs, and everything else, totally disappear. Canadians' taxes will be very substantially reduced, they will be more secure, militarily and otherwise, than ever before, there would no longer be a Northern Border problem, and the greatest and most powerful nation in the World will be bigger, better and stronger than ever," Trump added.
With files from Maureen Revait