The Trump administration just chalked up another win. On Tuesday, the premier of the Canadian province of Ontario, who had slapped a 25 percent surcharge on electricity exported from that province to the American states of Minnesota, Michigan, and New York, relented after the Trump administration proposed a new round of tariffs. The premier took to X to announce that he was suspending the electricity surcharge.

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 and Canada. Secretary Lutnick agreed to officially meet with Premier Ford in Washington on Thursday, March 13 alongside the United States Trade Representative to discuss a renewed USMCA ahead of the April 2 reciprocal tariff deadline. In response, Ontario agreed to suspend its 25 per cent surcharge on exports of electricity to Michigan, New York and Minnesota.

— Doug Ford (@fordnation) Mar 10, 2025

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 and Canada. 

Secretary Lutnick agreed to officially meet with Premier Ford in Washington on Thursday, March 13 alongside the United States Trade Representative to discuss a renewed USMCA ahead of the April 2 reciprocal tariff deadline. In response, Ontario agreed to suspend its 25 per cent surcharge on exports of electricity to Michigan, New York and Minnesota.

The statement came after Mr. Ford spoke with the United States Secretary of Commerce Howard Lutnick.

Ontario Premier Doug Ford said he had agreed to suspend a 25% surcharge on electricity imports into the U.S. after conversing with U.S. Commerce Secretary Howard Lutnick in the wake of President Donald Trump's threats to hike steel and aluminum tariffs on the nation by 50%.

In a statement issued with Lutnick and posted on X, Ford said he and Lutnick would now be meeting Thursday alongside the United States Trade Representative to discuss a renewal of the U.S.-Mexico-Canada free trade act ahead of Trump's self-imposed April 2 "reciprocal tariff deadline."

"In response, Ontario agreed to suspend its 25 per cent surcharge on exports of electricity to Michigan, New York and Minnesota," Ford said.

It's unclear at the moment what changes have been proposed to the U.S.-Mexico-Canada Act (USMCA) that prompted Mr. Ford to drop the surcharge.

President Trump has indicated he's willing to now reduce tariffs on Canada.

In subsequent remarks at the White House Tuesday afternoon, Trump said he was now looking at reducing tariffs on Canada. Asked if he would lower them, he said “probably so.”

"I’ll let you know" if 50% tariffs on Canada are going into effect, he said.

President Trump has a history of wielding tariffs as negotiating tools, the stick to counter the carrot of open American markets; this sure looks to be another example of just such an action. In any case, Ontario is back at the table, and Canada's new prime minister is doubtless taking notice.

Previously on RedState: Ante Up: Trump Announces 50% Tariff on Canadian Steel and Aluminum

Ontario, Canada Premier Doug Ford Wants to Add a 25% Surcharge on Electricity to the United States

Canada, we should note, has heavy tariffs on American products, most notably dairy products, those being up to 270 percent once an allowed threshold is reached. President Trump has likewise threatened reciprocal tariffs on American dairy products entering Canada. 

For now, though, the Trump administration can chalk up a win. The markets are reacting positively:

Major stock indexes, which had plunged on Trump's earlier tariffs threat, rallied into the green upon the suspension announcement.

This isn't over; the meeting to discuss possible revisions to the USMCA hasn't been scheduled yet. This is, even so, a considerable concession on the part of Ontario. Stay tuned!

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