Ontario Premier Doug Ford said late on Tuesday his government was suspending its 25 per cent surcharge on electricity exports to three US states after securing a meeting in Washington with the commerce secretary.
A day filled with escalation between Ford and US President Donald Trump crescendoed toward Ford’s announcement that the surcharge he introduced on Monday would be suspended after an “olive branch” from the White House.
Ford and US commerce secretary Howard Lutnick released a joint statement on Tuesday afternoon saying Ford, and federal finance minister Dominic LeBlanc, had been invited to the White House.
The invitation will see Ford travel to Washington DC on Thursday to meet Trump’s commerce team. The premier said he wasn’t sure if he would meet the president himself.
Ontario provides electricity to Minnesota, New York and Michigan.
“I will not hesitate to increase this charge. If the United State escalates, I will not hesitate to shut the electricity off completely,” Ford had earlier said in Toronto.
“Believe me when I say I do not want to do this. I feel terrible for the American people who didn’t start this trade war. It’s one person who is responsible, it’s President Trump.”
Earlier on Tuesday, Trump had posted on Truth Social: “I have instructed my secretary of commerce to add an addiotional 25 per cent tariff, to 50 per cent, on all steel and aluminum coming into the US from Canada, one of the highest tariffing nations anywhere in the world.”
However, Trump later said he was reevaluating plans to double the tariffs after Ontario announced it would suspend the surcharge on electricity sent to the US, a Bloomberg report said.
China duties kick in
Beijing began imposing tariffs on Monday on many farm products from the United States, for which China is the largest overseas market.
The Chinese government announced the tariffs last week, shortly after President Trump raised tariffs on Chinese products for the second time since he took office in January.
The Chinese tariffs will include a levy of 15 per cent on US products like chicken, wheat and corn, as well as 10 percent on products like soybeans, pork, beef and fruit.
India debates
India and the US are planning to negotiate a trade agreement and both countries will focus on increasing market access, reducing import duty and non-tariff barriers, and enhancing supply chain integration, Parliament was informed on Tuesday.
In a written reply to the Lok Sabha, minister of state for commerce and industry Jitin Prasada said that as on date, reciprocal tariffs have not been imposed by the US on India.
“Both countries plan to negotiate a mutually beneficial, multi-sector bilateral trade agreement. Both countries would focus on increasing market access, reducing tariff and non-tariff barriers, and enhancing supply chain integration,” he said.
