Donald Trump halts doubling of tariffs on Canadian metals after Ontario suspends electricity price hikes

President Donald Trump’s threat Tuesday to double his planned tariffs on steel and aluminum from 25% to 50% for Canada led the provincial government of Ontario to suspend its planned surcharges on electricity sold to the United States.

Ontario Premier Doug Ford said he was suspending plans to impose a 25 per cent surcharge on electricity exports to Washington, adding that he would hold talks with the Trump administration this week. Ford said the decision came after US Commerce Secretary Howard Lutnick reached out to him, “Both parties are heated and the temperature needs to come down.”

“When you are negotiating with someone (and) they call you and they hand over an olive branch, the worst thing I think I could do as a premier of Ontario is ignore them,” he was cited as saying by Reuters.

Ford said that he would visit Washington on Thursday along with federal Finance minister Dominic LeBlanc for talks with Lutnick and other administration officials. He said that both the sides will discuss a renewed trilateral deal with the US and Mexico. Ottawa had earlier suggested that it was okay with the idea of reviewing the deal as long as Washington tariffs lasted.

Citing Ford’s threat, Trump had also earlier announced that he would double his planned tariffs on Canadian steel and aluminium imports. To this, Ford said, “Let’s sit down and negotiate,” adding that talks were in the interest of both the parties.

Notably, Ontario supplies power to 1.5 millions in three US states, New York, Minnesota and Michigan. Following Ford’s announcement to halt the electricity surcharge, Trump said that he was reconsidering his decision to double steel and aluminium tariffs on Canadian imports.

“I’m looking at that, but probably so,” Trump told reporters on Tuesday when asked if Ontario’s move would lead him to back down on his tariff threat as well.

“I’ll let you know about it,” he said.