12 Mar 2025

Ontario, Canada, Suspends Surcharge on Electricity to USA and Halves New USA Metals Tariff

by Bonnie | | 0

The Canadian province of Ontario suspended the announced 25% surcharge on electricity it supplies to the USA as Donald Trump backed off from his threat to impose twice as high a tariff on Canadian steel and aluminum as on other countries.

Ontario supplies electricity to Michigan, New York and Minnesota for about 1.5 million Americans.

Trump intended to impose 50% tariffs on imported Canadian steel and alumimum when his 25% tariffs on those products from other countries take effect. Doubling of that rate for Canada has been suspended.

Ontario Premier Doug Ford now also has a meeting scheduled with Commerce Secretary Howard Lutnick to discuss renewing the trade pact Trump signed with Canada and Mexico during his first term in the White House, which Trump has discarded.

Trump wants Canada to drop its tariffs on dairy products from the USA. If Canada doesn’t, Trump threatens to impose sufficient tariffs on Canadian-built cars to strangle the Canadian automaking industry. It appears that will be a separate contest of wills. Trump continues to threaten to absorb Canada into the USA as a new state.

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