Ontario drops surcharge on electricity sales under threat of US retaliation
President Trump rescinded a threat of 50% tariffs on Canadian steel and aluminum after Ontario withdrew a 25% surcharge on electricity sold to the U.S. The post Ontario drops surcharge on electricity sales under threat of US retaliation appeared first on FreightWaves.
Ontario, Canada, on Tuesday dropped a 25% surcharge it had planned to place on electricity sold to the U.S., in response to an announcement by President Donald Trump that he would impose a 50% rather than 25% tariff on steel and aluminum imports from Canada, The Associated Press reported. NBC News later reported that Trump appeared to back away from imposing the 50% tariff.
“Based on Ontario, Canada, placing a 25% Tariff on ‘Electricity’ coming into the United States, I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD,” Trump initially posted on social media platform Truth Social. “This will go into effect TOMORROW MORNING, March 12th.”
Ontario’s premier, Doug Ford, agreed after a conversation with U.S. Commerce Secretary Howard Lutnick to drop the surcharge on electricity and said he believed Trump would withdraw the threat of the 50% tariff on steel and aluminum, the AP reported.
Later Tuesday, Trump said he would “probably” reduce tariffs on Canada.
Fears of a recession spurred a big drop in the stock market Monday, but Trump has not backed down on threats and the imposition of varying tariff levels against the United States’ biggest trading partners – Mexico, Canada and China – as well as reciprocal tariffs on other countries. The apparent stand-down on both sides of the border Tuesday helped rally key stock indexes, NBC reported.
The tariffs against Canada, Mexico and China aim to reduce illegal immigration as well as the flow of fentanyl into the United States, Trump has said, adding that many nations, including those in the European Union, have long taken advantage of the U.S. on trade.
Trump on Tuesday returned to the idea that Canada should become the 51st U.S. state.
“The only thing that makes sense is for Canada to become our cherished Fifty First State,” Trump wrote in his initial post Tuesday. “This would make all Tariffs, and everything else, totally disappear.”
A Leger poll last week showed 85% of Canadians oppose such a plan while 9% back it.
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