Ontario Premier Doug Ford has announced that Canada will suspend the planned 25% tariff on electricity exports to three U.S. states, Michigan, New York and Minnesota.
The discussion between United States Secretary of Commerce Howard Lutnick and Ford centered on trade disputes and efforts to strengthen economic ties between the two countries. Both leaders expressed a commitment to resolving issues that have emerged from recent tariff measures and finding ways to ensure a stable economic partnership.
Upcoming Trade Meeting in Washington
Following their discussion, Lutnick confirmed that he would meet with Ford in Washington, D.C., on Thursday, March 13, alongside the United States Trade Representative.
The meeting is expected to focus on the renewal of the U.S.-Mexico-Canada Agreement (USMCA), as well as strategies to avoid further trade disruptions.
With an important deadline looming on April 2 for reciprocal tariffs, the Washington meeting will be a crucial opportunity for both sides to negotiate terms that could prevent additional trade restrictions.
“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,” Ford announced on social media.
Ontario’s Electricity Surcharge Suspended
One of the most significant outcomes of the discussion was Ford’s decision to suspend Ontario’s planned electricity surcharge. The 25% surcharge on electricity exports had been a major point of contention, particularly for Michigan, New York, and Minnesota, which rely on power from Ontario.
The suspension of the surcharge signals a step toward easing tensions, but further negotiations will determine whether both nations can come to a broader agreement regarding trade policies.
The move comes after U.S. President Donald Trump recently announced that he would be doubling tariffs on Canadian steel and aluminum imports to 50%. He also threatened additional tariffs on Canadian automobiles if Canada did not remove tariffs on U.S. dairy products.
While Ontario’s decision to suspend the surcharge is seen as a positive development, trade relations between the U.S. and Canada remain uncertain.
The upcoming Washington meeting will provide a platform for further discussions on tariffs, energy exports, and the future of the USMCA agreement.
With the April 2 deadline fast approaching, the negotiations will likely shape the next phase of economic policy between the two nations. Whether this meeting leads to a long-term resolution or further trade conflicts remains to be seen.
This is a developing story. Updates will follow as more details emerge.