President Donald Trump’s tariff standoff with Canada experiences a surprising turnaround following discussions with Ontario Premier Doug Ford.
Key Takeaways
- President Trump announced increased tariffs on Canadian imports as a result of Ontario Premier Doug Ford’s 25% electricity surcharge on the United States.
- US Secretary of Commerce Howard Lutnick had a call with Ford, resulting in the 25% surcharge being reversed.
- Trump also then reversed his proposed 50% tariffs as a result.
Trump’s Tariff Announcement
President Donald Trump planned to introduce new tariffs on Canadian imports on Wednesday. The decision aimed to address perceived trade imbalances, and was meant to counter Ontario Premier Doug Ford’s 25% electricity surcharge against the United States. Both parties’ tariff announcements were set to be yet another significant blow to the economic relations between the two neighboring countries.
The impositions were set to affect steel and aluminum imports, raising significant concerns among Canadian officials. Premier Doug Ford of Ontario was particularly vocal about these concerns.
Ontario’s Response and Diplomatic Engagement
Ontario Premier Doug Ford responded by suspending a planned 25% electricity surcharge on the United States. Ford stated that he “had a productive conversation about the economic relationship between the United States and Canada,” referencing his call with US Secretary of Commerce Howard Lutnick. Both agreed to “let cooler heads prevail,” Ford told reporters. This strategic pause appeared to be a diplomatic effort to ease tensions between the two countries, at least for now.
The discussions then further resulted in Trump reversing his decision to double tariffs on Canada, which he boasted on Truth Social, showcasing a sentiment of diplomacy over further aggressive economic measures.
Significance of the Reversal
The reversal of both Ford and Trump’s tariff decisions could be significant for future US-Canada relations, which have been tense and uncertain as of late. The mutual understanding and adjustments made benefit both nations in the present moment, and could play an important role in preventing potential escalations detrimental to each country’s economy.
Doug Ford has since agreed to meet with the Trump Administration in the coming days as well, further signaling potential progress in resolving the ongoing trade war between the two neighboring allies.
Please see a joint statement from United States Secretary of Commerce Howard Lutnick and myself:
Today, United States Secretary of Commerce @howardlutnick and Premier of Ontario Doug Ford had a productive conversation about the economic relationship between the United States…— Doug Ford (@fordnation) March 11, 2025
Sources
1. Ontario agrees to suspend electricity surcharge ahead of talks with US
2. Trump will not impose 50% Canadian steel, aluminum tariffs tomorrow, says top trade advisor
