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By Dan Gooding
Associate News Editor
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Ontario Premier Doug Ford said Tuesday afternoon that he would suspend 25 percent tariffs on electricity to parts of the northern United States.
The message came after a phone call between Ford and U.S. Secretary of Commerce Howard Lutnick, they said in a joint statement shared on X, formerly Twitter. The pair will now meet in Washington, D.C., on Thursday.
Why It Matters
The U.S. and Canada have been going back and forth over tariffs since President Donald Trump's return to the White House on January 20. Trump had threatened tariffs over what he said was a lack of action by Canada, Mexico and China over the flow of fentanyl into the country.
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What To Know
Canada sells some electricity to northern parts of the U.S., including New York, Michigan and Minnesota. The exports are thought to generate around $700 million for Ontario.
On Monday, Ford announced the 25 percent tariff in response to Trump saying he would proceed with similar charges on Canadian goods. This was despite a pause earlier in the month following discussions with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum.
Trump bemoaned Ford's actions, calling it an "abusive threat" and stating he would declare an emergency in the U.S. communities affected.
Ford told reporters on Monday that he would "apply maximum pressure" on the Trump administration, adding that he felt "terrible for the American people" who had not asked to be involved in a trade war.
A day later, Ford spoke with Lutnick on the phone, and the pair said they had a "productive conversation" that led to the suspension of Ontario's tariffs.
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What People Are Saying
Ontario Premier Doug Ford and U.S. Secretary of Commerce Howard Lutnick in a joint statement on X: "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."
U.S. President Donald Trump, Monday on Truth Social: "Canada is a Tariff abuser, and always has been, but the United States is not going to be subsidizing Canada any longer. We don't need your Cars, we don't need your Lumber, we don't your Energy, and very soon, you will find that out. MAKE AMERICA GREAT AGAIN!!!"
What Happens Next
The U.S. tariffs on Canadian steel and aluminum are still expected to begin March 12, while other hikes are expected to be enforced from April 2.
Update 3/11/25, 4:36 p.m. ET: This article was updated with additional information.
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