The federal government of Ontario on Tuesday backed off its menace to impose a surcharge on electrical energy to 3 U.S. states amid broader commerce talks.
In a joint assertion from Ontario Premier Doug Ford and Commerce Secretary Howard Lutnick, the 2 leaders stated that they had a “productive conversation about the economic relationship between the United States and Canada.”
The 2 stated they might meet in individual in Washington on Thursday to debate a renewal of the U.S.-Mexico-Canada commerce settlement forward of reciprocal tariffs set to enter impact on April 2.
“In response, Ontario agreed to suspend its 25 percent surcharge on exports of electricity to Michigan, New York and Minnesota,” Ford and Lutnick stated.
President Trump confirmed the settlement in feedback to reporters on the White Home.
“As you know, there’s a very strong man in Canada who said he was going to charge a surcharge or a tariff on electricity coming into our country. He has called, and he said he’s not going to do that,” Trump stated. “And it would’ve been a very bad thing if he did, and he’s not going to do that, so I respect that.”
Trump earlier Tuesday had threatened to double deliberate metal and aluminum tariffs on Canada starting Wednesday, citing Ontario’s determination to place a cost on electrical energy exports.
A White Home official didn’t instantly reply to a request for remark about whether or not he would nonetheless perform that menace, however Trump indicated he would possible again off.
“Now I’m looking at that,” Trump stated. “However most likely so. He was a gentleman.”
The Trump administration is about to impose across-the-board 25 p.c tariffs on metal and aluminum Wednesday, however Trump posted on Reality Social that he was directing Lutnick to extend the tariffs on Canadian imports of the metals from 25 p.c to 50 p.c.
The USA in 2024 imported extra metal and aluminum from Canada than from every other nation.
Trump earlier Tuesday threatened further tariffs in opposition to Canada within the coming weeks, pointing to plans for his administration to impose reciprocal tariffs starting April 2 on all international locations with duties on U.S. merchandise. These included tariffs on automobiles, which Trump claimed would “essentially, permanently shut down the automobile manufacturing business in Canada.”
The president earlier this month introduced 25 p.c tariffs on imports from Canada and Mexico, although he has introduced one-month exemptions for automobile components and different items that fall beneath the U.S.-Mexico-Canada commerce settlement signed in 2020 throughout his first time period.
The uncertainty round Trump’s tariff plans have led to a downturn within the inventory market, and the president has not dominated out the chance of a recession this yr.
— Up to date at 3:36 p.m. EDT
