Canadian Premier shares statement in major U-turn after slapping huge tax increase on electricity for Americans

Ontario Premier Doug Ford has backed down from his threat to raise electricity prices for Americans in New York, Michigan, and Minnesota. This comes after a tense trade dispute between the U.S. and Canada, sparked by President Donald Trump’s decision to impose a 25% tariff on Canadian steel and aluminum.

Ford had initially threatened to add a 25% surcharge on electricity exports to the U.S., which would have affected 1.5 million Americans and added around $1,200 to their annual electricity bills. He even warned he might cut off power entirely if Trump continued to escalate the trade war.

However, in a surprising turn, Ford announced he would suspend the electricity surcharge after a “productive conversation” with U.S. Commerce Secretary Howard Lutnick. The two agreed to meet on March 13 to discuss renewing the US-Mexico-Canada free trade agreement before Trump’s April 2 deadline for further tariffs. Ford tweeted that Ontario would pause the surcharge, and Trump praised the decision, calling Ford a “strong man” and saying he respected the move.

Just hours before this announcement, Ford had apologized to Americans who would have been impacted by the surcharge, blaming Trump for starting the trade war. “It’s not the American people who started this,” Ford said. “It’s one person who’s responsible. That’s President Trump.”

The trade war has caused significant tension between the two countries, with Trump’s tariffs hurting Canadian industries and Canada retaliating with measures targeting U.S. goods. Ford’s decision to suspend the electricity surcharge offers a temporary break in the conflict, but the underlying issues remain unresolved. Incoming Canadian Prime Minister Mark Carney has called the trade war the “greatest crisis in our lifetime” for Canadians and vowed to address it head-on.

For now, Ford’s U-turn has given hope that diplomacy might help ease tensions, but the situation remains fragile as both sides prepare for further negotiations.