Ontario Stops Electricity Hikes After Trump Threatens Double Tariffs on Steel, Aluminum

*UPDATE* Ontario Premier Doug Ford backed off the electricity hikes. From The Associated Press:

Ontario Premier Doug Ford said on Tuesday afternoon that U.S. Commerce Secretary Howard Lutnick called him and Ford agreed to remove the surcharge. He said he was confident that the U.S. president would also stand down on his own plans for 50% tariffs on Canadian steel and aluminum.

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President Donald Trump has ordered Secretary of Commerce Howard Lutnick to double tariffs on Canadian steel and aluminum since the country added 25% tariffs on electricity to the U.S.

Trump wrote on Truth Social:

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. This will go into effect TOMORROW MORNING, March 12th. Also, Canada must immediately drop their Anti-American Farmer Tariff of 250% to 390% on various U.S. dairy products, which has long been considered outrageous. I will shortly be declaring a National Emergency on Electricity within the threatened area. This will allow the U.S to quickly do what has to be done to alleviate this abusive threat from Canada. If other egregious, long time Tariffs are not likewise dropped by Canada, I will substantially increase, on April 2nd, the Tariffs on Cars coming into the U.S. which will, essentially, permanently shut down the automobile manufacturing business in Canada. Those cars can easily be made in the USA! Also, Canada pays very little for National Security, relying on the United States for military protection. We are subsidizing Canada to the tune of more than 200 Billion Dollars a year. WHY??? This cannot continue. The only thing that makes sense is for Canada to become our cherished Fifty First State. This would make all Tariffs, and everything else, totally disappear. Canadians’ taxes will be very substantially reduced, they will be more secure, militarily and otherwise, than ever before, there would no longer be a Northern Border problem, and the greatest and most powerful nation in the World will be bigger, better and stronger than ever — And Canada will be a big part of that. The artificial line of separation drawn many years ago will finally disappear, and we will have the safest and most beautiful Nation anywhere in the World — And your brilliant anthem, “O Canada,” will continue to play, but now representing a GREAT and POWERFUL STATE within the greatest Nation that the World has ever seen!

Trump added an hour later:

Why would our Country allow another Country to supply us with electricity, even for a small area? Who made these decisions, and why? And can you imagine Canada stooping so low as to use ELECTRICITY, that so affects the life of innocent people, as a bargaining chip and threat? They will pay a financial price for this so big that it will be read about in History Books for many years to come!

The 25% tariffs from Canada will affect cities in upstate New York the most: Buffalo, Ogdensburg, and Rochester.

Ontario Premier Doug Ford also threatened Minnesota and Michigan.

The tariffs don’t appear to affect Arizona, California, Maine, New Hampshire, Nevada, North Dakota, or Vermont.

“I don’t start a tariff war, but we’re going to win this tariff war. If they want to try to annihilate Ontario, I will do everything—including cut off their energy with a smile on my face, and I’m encouraging every other province to do the same,” said Ford.

Ford declared: “They rely on our energy. They need to feel the pain.”

The tariffs could affect 1.5 million homes and businesses.

“I will not hesitate to increase this charge. If the United States escalates, I will not hesitate to shut the electricity off completely,” threatened Ford.

Failed Democrat vice president candidate Minnesota Gov. Tim Walz tried to make it a big deal because Orange Man Bad:

But…Walz backtracked a few hours later. From The Associated Press:

In a brief press availability later Monday, Walz acknowledged that Minnesota doesn’t get a lot of electricity from Ontario, but he’s worried about Manitoba following suit.“So look, even if it were one megawatt, this is totally unnecessary. And the fact of the matter is, it doesn’t impact Donald Trump one bit. It impacts ratepayers in Minnesota. For what? These are our friends,” he said.Walz said he’s even more worried about the impact on Minnesota if Canadian potash fertilizer gets caught up in the trade war. “If it starts with this, the one that I’m really worried about is potash, when it comes behind it. If they do potash, that’s a big one on agriculture,” he said.Walz said he discussed these concerns last week when he spoke with the premiers of Ontario and Manitoba. He said they told him the dispute is broader than just their trading relations with Minnesota.“They were very clear that it’s not Minnesota — we’re huge trading partners.”Minnesota Power, the main electrical utility serving the part of Minnesota that borders Ontario, gets only a “very small” proportion of its power from the province, company spokesperson Amy Rutledge said.

Tags: Canada, Donald Trump, Economy, Michigan, Minnesota, New York, Taxes

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