Ford backs down on U.S. electricity fees after Trump’s threat to double tariffs

Premier Ford has suspended his planned 25 per cent electricity surcharge on energy exports to the U.S. Ford backed down after President Trump vowed to double tariffs on Canadian aluminum and steel.

Source: Facebook

Ontario Premier Doug Ford has suspended his planned 25 per cent electricity surcharge on energy exports to the U.S. Premier Ford backed down after U.S. President Donald Trump vowed to double tariffs on Canadian aluminum and steel starting Wednesday.

Ford made the announcement Tuesday at Queen’s Park, stating that the fee suspension came after U.S. Commerce Secretary Howard Lutnick “extended the olive branch” and invited Ford to Washington for talks Thursday.

“With any negotiation that we have, there’s a point that both parties are heated and the temperature needs to come down. And I thought this was the right decision,” Ford said. “They understand how serious we are about the electricity and the tariffs, and rather than going back and forth and and having threats to each other, we have both agree that cooler heads prevail.”

Ford confirmed that federal Finance Minister Dominic LeBlanc would also attend and “inform” Prime Minister-designate Mark Carney of what’s discussed.

Trump, in response to Ford’s tariff threat, reiterated his commitment to impose reciprocal tariffs. He criticized Canada’s trade policies on his Truth Social platform.

“Despite the fact that Canada is charging the USA from 250% to 390% Tariffs on many of our farm products, Ontario just announced a 25% surcharge on “electricity,” of all things, and you’re not even allowed to do that,” Trump said. “Because our Tariffs are reciprocal, we’ll just get it all back on April 2. Canada is a Tariff abuser and always has been, but the United States is not going to be subsidizing Canada any longer.”

Trump claimed he would match the charges to recoup any potential losses caused by retaliation. Ford has previously claimed that he would not hesitate to increase this charge or shut the electricity off “completely” if the trade war escalated.

“We don’t need your Cars, we don’t need your Lumber, we don’t need your Energy, and very soon, you will find that out,” Trump said.

U.S. Press Secretary Karoline Leavitt claimed that Ford’s comments about potentially shutting off electricity to American customers were “egregious” and justified Trump’s heavy-handed response.

“Doug Ford ma(d)e an egregious and insulting comment threatening to shut down electricity for the American people, for hard-working American families. He made that threat,” Leavitt said. “The President saw that and has an obligation and a responsibility to respond accordingly and represent the interests of the American people.”

While it remains unclear if Trump will proceed with the 50 per cent tariffs, Ford’s move to impose the surcharge certainly caught the U.S. President’s attention.

“I’m not out to hurt the American people. I told the governors I’m not out to hurt them. I apologize that we have to even have to get to this point,” Ford said. “But sometimes you have to play your cards, and this is one of the cards that we played, and hopefully, we’re going to have a very good, constructive conversation with the secretary when we get down there.”

Ford’s office did not respond to True North’s requests for comment.

Leavitt said that American steel and aluminum companies “applaud” the tariffs as they will allow them to export more steel made in the U.S.

When asked if Canadian leaders have the same responsibility to respond to Trump’s tariffs, Leavitt claimed Canada has tariffed the U.S. for decades with supply management, including a “nearly 300 per cent tariff on American cheese and butter.”

“All he’s asking for at the end of the day are fair and balanced trade practices and unfortunately, Canada has not been treating us very fairly at all over the past several decades,” said Leavitt.

Other provincial leaders, including Alberta Premier Danielle Smith and British Columbia Premier David Eby, warned that such energy taxes would raise the cost of living in their own provinces.

Smith said she would never support a similar federal tax on Alberta’s oil and gas exports to the U.S., while Eby cautioned that imposing an energy tax in B.C. could exacerbate already high costs of living despite pressure from Ford and now Prime Minister-designate Mark Carney.