Ontario Premier Walks Back 25% Electricity Hike For U.S. Exports After Trump's Revenge Tariffs

President Donald Trump said he is reconsidering doubling tariffs on Canadian steel and aluminum after Ontario Premier Doug Ford confirmed the halting of a 25% surcharge on electricity exports to three U.S. states.

Ford announced the decision on his X account, saying it resulted from a conversation with U.S. Commerce Secretary Howard Lutnick.

"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," reads the joint statement by the two officials.

Tensions quickly escalated after Ford announced the surcharge on Monday. "I will not hesitate to increase this charge," said the premier when discussing the matter. He also warned he would not "hesitate to shut the electricity off completely" and said that even though he felt "terrible for the American people who didn't start this trade war" the responsibility fell on President Trump.

Trump upped the ante on Tuesday, saying he would double announced tariffs on steel and aluminum coming from the country, adding that tensions would only subside if Canada was absorbed by the United States. He added that the measure would go into effect on Wednesday and declare a "National Emergency on Electricity" within the impacted area.

"This will allow the U.S to quickly do what has to be done to alleviate this abusive threat from Canada. If other egregious, long time Tariffs are not likewise dropped by Canada, I will substantially increase, on April 2nd, the Tariffs on Cars coming into the U.S. which will, essentially, permanently shut down the automobile manufacturing business in Canada. Those cars can easily be made in the USA!" Trump said in a lengthy post.

After claiming the country also "pays very little for National Security" and that the U.S. is "subsidizing Canada to the tune of more than 200 Billion Dollars a year," Trump said "the only thing that makes sense is for Canada to become our cherished Fifty First State."

The new leader of Canada's ruling Liberal party, Mark Carney, has taken a confrontational stance toward the matter, vowing to win the trade war with Trump. After winning the party's leadership contest, he said "in trade, as in hockey, Canada will win." "We can't let him succeed," he added.