Ontario Premier Doug Ford reversed course Tuesday, suspending a 25% electricity surcharge on U.S. states just one day after its implementation. Ford initially insisted he would be “relentless” in enforcing the tariff but quickly apologized to Americans and withdrew the policy during an appearance on WABC’s Cats & Cosby radio show.
The electricity tariff, aimed at New York, Michigan, and Minnesota, was introduced as a retaliatory measure against President Donald Trump’s new tariffs on Canadian steel and aluminum. However, economists warned that Canada’s heavy dependence on U.S. exports meant the policy would likely harm Ontario’s energy sector more than the United States. An estimated 1.5 million American homes and businesses would have been affected by the surcharge.
“I want to apologize to the American people. I spent 20 years of my life in the U.S., in New Jersey, in Chicago. I love the American people,” Ford stated. “Secretary Lutnick and President Trump are brilliant businesspeople. They are hard negotiators. We need to put this behind us and move forward and build the two strongest countries in the world.”
Ford’s stance on the tariff shifted significantly after discussions with U.S. Secretary of Commerce Howard Lutnick. Initially, he had taken an aggressive approach, declaring on MSNBC, “We will not back down. We will be relentless.” His statement was in response to Trump raising steel and aluminum tariffs on Canada. In retaliation, Trump threatened to double those tariffs to 50% if Ontario proceeded with the electricity surcharge.
Following Ford’s reversal, Trump withdrew his planned tariff increase. Ford is scheduled to meet with Lutnick in Washington, D.C., on Thursday to continue trade discussions. If a deal is not reached by the April 2 deadline, Ontario’s electricity tariff and Trump’s steel and aluminum tariff hike may both be reinstated.
Ontario sold approximately 12 terawatt hours of electricity to the U.S. in 2023, making America its largest energy customer outside of Canada. Ford initially claimed the tariff would have increased American energy bills by around $100 per month.
The dispute is part of broader U.S.-Canada trade tensions. Canada recently announced $20 billion in retaliatory tariffs on American goods, following Trump’s February demands that Canada assist in curbing the illegal fentanyl trade. Trump initially paused a 25% general goods tariff in exchange for Canada’s cooperation, but the tariff resumed in March after the pause expired.
“Canada is a tariff abuser, and always has been, but the United States is not going to be subsidizing Canada any longer,” Trump wrote on Truth Social on March 10.
Ford’s office did not immediately respond to requests for comment regarding the tariff suspension.
