Ontario is suspending the 25% surcharge on electricity exported to the United States after President Donald Trump upped the ante Tuesday morning.
Trump said he will raise tariffs on steel and aluminum to 50%, effective Wednesday.
Premier Doug Ford, after his vehement announcement on Monday that he would impose 25% tariffs on the US, which would impact 1.5 million homes and businesses across three states, and hours after Trump announced the counter-tariff, changed his mind.
“It’s called an olive branch,” Ford told reporters Tuesday afternoon, explaining he had a phone call from US Secretary of Commerce Howard Lutnick.
Ford said he is scheduled to go to Washington meet with American counterparts Thursday to “discuss a renewed USMCA ahead of the April 2 reciprocal tariff deadline.”
He added prime minister designate Mark Carney, along with current Finance Minister Dominic LeBlanc will join him.
Trump immediately responded to Ford's afternoon announcement, saying he "respects Ontario's decision to suspend the 25% surcharge."
Both Liberal party leader Mark Carney, who is set to replace Justin Trudeau as prime minister, and Tory leader Pierre Poilievre have condemned Trump's announcement he will double the tariffs on aluminum and steel.