Ontario Premier Doug Ford announced Tuesday that Canada’s 25% surcharge on electricity exports to the U.S. would be suspended, just hours after President Donald Trump announced an increase in tariffs on Canadian steel and aluminum.

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Ford made the announcement in a statement posted on X, revealing that he had a “productive conversation” with U.S. Commerce Secretary Howard Lutnick.

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Ford also confirmed that he would meet with Lutnick and U.S. Trade Representative Jamieson Greer in Washington on Thursday to discuss a “renewed USMCA,” referring to the North American trade agreement originally signed during Trump’s first term.

“In response, Ontario agreed to suspend its 25 percent surcharge on exports of electricity to Michigan, New York and Minnesota,” Ford and Lutnick stated in a joint announcement.

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Earlier in the day, Trump had strongly criticized Canada’s electricity surcharge, warning that the U.S. would retaliate by increasing tariffs on Canadian steel and aluminum to 50%.

The higher tariff rate was scheduled to take effect on Wednesday morning.

However, after Ford’s announcement, Trump trade adviser Peter Navarro told CNBC that there would be no additional tariff increase beyond the existing 25%.

Trump also issued a warning to Canada regarding its high tariffs on U.S. dairy products.

He signaled that if Canada did not drop those tariffs, he would impose new levies on the Canadian auto industry starting April 2.

The president stated that these tariffs would be severe enough to “decimate” Canadian auto exports.

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On the South Lawn of the White House, Trump praised Ford for reversing the electricity surcharge, stating, “He has called, and he said he’s not going to do that … it would’ve been a very bad thing if he did, and he’s not going to do that, so I respect that.”

However, Trump did not clarify whether the initial 25% tariffs on Canadian steel and aluminum would still go into effect as planned on Wednesday.

Tensions over trade between the U.S. and Canada have been ongoing since Trump took office.

He has repeatedly warned that blanket 25% tariffs would be imposed if Canada did not take action to secure its northern border against illegal immigration and drug smuggling, or if it failed to lower tariffs on U.S. goods.

In February, Trump delayed the initial imposition of tariffs for one month after Canada agreed to deploy troops to the border and increase efforts to combat drug trafficking.

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Despite these measures, the U.S. moved forward with 25% across-the-board tariffs on Canadian goods starting March 4.

Following the implementation of these tariffs, Trump later announced a series of exemptions.

In the days after the tariffs took effect, he carved out one-month exemptions for Canadian and Mexican auto imports.

This was later expanded to include other goods covered under the U.S.-Mexico-Canada Agreement (USMCA), signed during Trump’s first term.

The trade battle between the two nations remains unresolved, as Trump has stated that he is prepared to issue reciprocal tariffs on dairy and lumber if Canada does not lower its rates.

Additionally, April 2 remains a key date for further trade actions, with the administration expected to impose tariffs not only on Canadian auto exports but also on imports from other major trading partners, including the European Union and Japan.

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