On Monday, Ontario Premier Doug Ford temporarily suspended the 25% tax on electricity exports to the United States.
This decision comes after President Donald Trump declared his intention to impose an additional 25% tariff on Canadian steel and aluminum, citing a rise in Canadian electricity costs.
Ford’s move comes after discussions with U.S. Secretary Howard Rutnik, during which both parties agreed to resume trade negotiations. As a result, Ontario has paused the increase in electricity prices.
Ford stated that following a productive conversation about the economic relationship between the two countries, they had reached an agreement to prioritize rational thinking, as he informed reporters.
Ontario’s nuclear power plants supply electricity to several U.S. states, including Minnesota, Michigan, and New York. Approximately 1.5 million American households rely on this power.
Previously, in response to Trump’s 25% tariff on Canadadian goods, Ontario had raised its electricity costs to the U.S. by 25%. Countering this move, Trump announced on his social media platform, Truth Social, that he would raise tariff rates on Canadian steel and aluminum to 50%, taking effect immediately on Wednesday. However, a senior Trump administration official suggested to CNBC that Trump had not yet signed any executive orders, implying it might be a negotiation tactic.
As part of the ongoing discussions, Ford will meet with Rutnik and U.S. Trade Representative Jamieson Greer in Washington on Wednesday to discuss potential revisions to the United States—Mexico—Canada Agreement.
