Canada has backed down on its 25% electricity tariff on the U.S. after President Donald Trump warned the country would face severe financial consequences.
Ontario Premier Doug Ford announced the removal of the tariff imposed on electricity exports to Michigan, New York, and Minnesota, which was introduced in response to previous U.S. tariffs under Trump. Ford stated that he had spoken with U.S. Commerce Secretary Howard Lutnick, and both sides agreed to meet on March 13 with the U.S. Trade Representative to discuss reciprocal trade measures Trump aims to introduce by April 2.
Trump recently declared a national energy emergency in the U.S. and doubled tariffs on Canadian aluminum and steel after Canada introduced the electricity tariff. The escalating trade tensions highlight ongoing economic friction between the two nations under Trump’s administration.
