Ontario Premier suspends electricity surcharge for the U.S. In a significant development amid escalating trade tensions, Ontario Premier Doug Ford announced the suspension of a planned 25% surcharge on electricity exports to the United States. This decision came shortly after President Donald Trump threatened to double tariffs on Canadian steel and aluminum imports from 25% to 50%.
It is simple economics, with lower electric costs. US manufacturing can lower production costs and create higher profits for their shareholders while Canada can enjoy brisk tariffs without the fear of reprisal from its biggest consumer, the US.
The sequence of events began when President Trump announced an increase in tariffs on Canadian steel and aluminum, citing national security concerns and aiming to protect American industries.
In response, Premier Ford had initially proposed a 25% surcharge on electricity exports to U.S. states, including Michigan, New York, and Minnesota, as a countermeasure.
However, following discussions with U.S. Commerce Secretary Howard Lutnick, Premier Ford decided to suspend the electricity surcharge. He stated that both parties were "heated" and emphasized the need to "bring the temperature down." Ford also announced plans to meet with U.S. officials in Washington on March 13 to discuss the renewal of the United States-Mexico-Canada Agreement (USMCA) ahead of the April 2 reciprocal tariff deadline.
In response to Ontario's suspension of the electricity surcharge, President Trump retracted his threat to double the tariffs on Canadian metals, maintaining them at the original 25% rate. He expressed optimism about resolving trade disputes and emphasized the importance of the U.S.-Canada economic relationship.
This de-escalation is seen as a positive development for both nations. For Canada, it averts the economic impact of heightened U.S. tariffs on its steel and aluminum industries. For the United States, the suspension of the electricity surcharge ensures a stable supply of electricity from Ontario to key states, potentially at more favorable rates. This mutual concession underscores the benefits of diplomacy and open dialogue in resolving trade disputes.
The upcoming discussions on the USMCA renewal present an opportunity for both countries to address existing trade issues and strengthen their economic partnership. Stakeholders on both sides of the border are hopeful that these talks will lead to a more robust and mutually beneficial agreement, fostering economic growth and stability in the region.
Recent decisions by Premier Ford and President Trump highlight a collaborative approach to resolving trade tensions, resulting in favorable outcomes for both Canada and the United States.
Final Word: For a bright and sustained economic prosperity, sometimes even the closest of friends must realign their mutual success.
Replies
A trade war has never had any winners......until President Trump showed up. Amazing.
Mon Dieu!! WHY are we buying electricity from Canada?
Niagara falls in NY but has a pumping plants in Canada. Been there.....
Okay, so Canada got lucky, they got the bigger falls, but the question still remains why are we buying from Canada? Should we not produce our own to be self reliant? We should only buy from others that we cannot produce ourselves, especially when it comes to the basic essentials, like electricity, oil and gas to keep us bright, warm, and the cars running.
Good point. Canada has A LOT of timber and some very fertile farmland with shorter growing season just like Alaska and giant oil & gas reserves. Not to mention the strategic importance to the US. This is one of the reasons Trump wants to grab it! The more we make Canada dependent on the US the greater grip we have on them. Soon it will become a 'protectorate' of the US, then a territory. BTW - they have some very good trade agreements with other countries we would inherit if they become a territory.
The big picture is very bright for the US and Canada! IMHO!
Wonder why the pumping stations were not built on the US side??
They have the bigger falls, the Horseshoe, we have the smaller on our side of the border. I'm sure we could make plenty of electricity from our falls as well, and wonder how much of their facility up there we paid for?
Precisely, why do we buy from them?
We should be in the position to provide everything we need ourselves and only buy luxury items from other countries, things we enjoy, like, but can easily live without
👍
Canada will realize fast that having a pissing match with Trump isn't a good idea, they aren't in a strong position when they depend on much more than what we get from them. Is there anything we really need from Canada? Not even maple syrup.....I see the Amish around me cooking like there's no tomorrow!
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