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By Anna Skinner
Associate News Editor
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Should Ontario reinstate its 25 percent tariff on electricity exports to the U.S., President Donald Trump plans to declare a "national emergency on electricity" in the three states affected.
Newsweek reached out to the White House by email for comment.
Why It Matters
On Monday, the Ontario government enacted a 25 percent tariff on electricity flowing into parts of the U.S. Ontario Premier Doug Ford subsequently suspended the tariffs on Tuesday following a "productive conversation" with U.S. Secretary of Commerce Howard Lutnick.
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Early Tuesday morning, Trump said he ordered Lutnick to implement an additional 25 percent tariff, raising the tariff to 50 percent, on all steel and aluminum products coming from Canada in response to Canada's electricity tariff.
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What to Know
Ford's tariffs were expected to raise power bills for 1.5 million U.S. homes and businesses. He previously threatened to "cut off their energy with a smile on my face." The new tariffs on electricity exports to the U.S. were expected to cost Americans up to $400,000 every day they remained in place.
Ford threatened Minnesota, New York and Michigan. Two of the top U.S. cities importing Canadian electricity, according to U.S. Census data, are in New York: Buffalo and Ogdensburg. Rochester, New York, was also expecting to see a significant increase to electric bills from the tariffs.
Trump posted his response to Ontario's tariffs on Truth Social on Tuesday morning, when the tariffs were still in place. In the post, Trump said he implemented additional tariffs against Canada. He also addressed the electricity issue.
"I will shortly be declaring a National Emergency on Electricity within the threatened area," Trump said in the post. "This will allow the U.S to quickly do what has to be done to alleviate this abusive threat from Canada."
Though Ford suspended the tariffs, Trump could move forward with the national emergency if they are reinstated.
What People Are Saying
Joint statement issued by Ford and Lutnick: "Today, United States Secretary of Commerce [Howard Lutnick] and Premier of Ontario Doug Ford had a productive conversation about the economic relationship between the United States and Canada. 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."
Trump in a post on Truth Social: "The only thing that makes sense is for Canada to become our cherished Fifty First 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 — And Canada will be a big part of that."
What Happens Next
Lutnick is expected to meet with Ford in Washington on Thursday to discuss a renewed trade agreement with the U.S.
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