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Home » Toronto » News » Ontario Suspends 25% Electricity Surcharge Amid Trade Discussions

Ontario Suspends 25% Electricity Surcharge Amid Trade Discussions

Published by To Do Canada On March 11, 2025
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Ontario has suspended its 25 percent surcharge on electricity exports to Michigan, New York, and Minnesota following discussions between Premier Doug Ford and U.S. Secretary of Commerce Howard Lutnick.

image

Credit: FordNation/Facebook

The decision was announced in a joint statement on X after Ford and Lutnick talked over the phone Tuesday to discuss economic relations between Canada and the United States.

 

Ford said that Lutnick had called him during the press conference. He said, “When someone does that, you have to respect that person.”

Ford emphasized the urgency of the meeting, stating, “The worst thing that could happen is wait and let this drag out until April 2nd.”

Ford highlighted the economic risks, warning, “Assembly lines will shut down in the U.S. and Canada, the stock market is tumbling.”

He stressed that Ontario remains a key trade partner and urged a collaborative approach, adding, “We need to move forward jointly.” While expressing confidence in negotiations, he assured, “By no means are we just going to roll over.”

 

image

Screenshot X.com

The suspension comes ahead of a scheduled meeting on March 13 in Washington, where Ford, Lutnick, and the U.S. Trade Representative will discuss the renewal of the United States-Mexico-Canada Agreement (USMCA). The talks take place in anticipation of an April 2 deadline for potential reciprocal tariffs.

Ontario had implemented the surcharge on Monday, projecting daily revenue between $300,000 and $400,000. The measure affected electricity supplied to approximately 1.5 million homes and businesses in the three U.S. states.

In response to Ontario’s tariff, U.S. President Donald Trump announced an increase in tariffs on Canadian steel and aluminum to 50 percent, set to take effect on March 12.

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