Ontario Premier Doug Ford is hitting pause on a 25% surcharge on electricity exports to the U.S. after a tense but fruitful call with U.S. Commerce Secretary Howard Lutnick. The two have locked in a Thursday showdown in Washington, D.C., to hash out a revamped United States-Mexico-Canada Agreement (USMCA) before President Donald Trump’s April 2 tariff deadline looms.
The decision comes hot on the heels of Trump’s vow to slap a hefty 50% tariff on Canadian steel and aluminum—doubling the planned 25% hit set for Wednesday—after Ontario rolled out its power surcharge on Monday. That move had juiced up electricity costs for 1.5 million homes across New York, Michigan, and Minnesota, with Ford warning he’d crank it higher if the U.S. kept swinging in the trade war.
But after Tuesday’s chat with Lutnick, Ford says it’s time to dial down the drama. “We had a solid talk and agreed this tit-for-tat needs to chill,” Ford said, signaling a shift from his Monday muscle-flexing to a more diplomatic play. The Washington meeting aims to tackle Trump’s tariff threats head-on and rework the USMCA to steady the economic ship for both sides of the border.
Ontario’s surcharge, which kicked in Monday, was a direct counterpunch to Trump’s escalating trade jabs. Now, with a high-stakes sit-down on the horizon, Ford’s suspension of the power tax marks a tactical timeout—one that could reshape the cross-border battle as deadlines and tempers simmer.