Trump reacted to Canada's 25% electricity surcharge by doubling tariffs on steel and aluminum from 25% to 50%, taking effect Wednesday.

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Simone Del Rosario Business Correspondent

Politics

Ontario suspends electricity surcharge after Trump doubles Canada tariffs

Published Mar 11 Updated Mar 11

Simone Del Rosario Business Correspondent

By Simone Del Rosario (Business Correspondent), Emma Stoltzfus (Video Editor), Ali Caldwell (Motion Graphics Designer)

President Trump said he will double tariffs on Canadian steel and aluminum from 25% to 50%. The increased tariffs will take effect Wednesday, March 12.
The announcement came after Ontario implemented a 25% surcharge on electricity exports to Michigan, Minnesota and New York.
Later, Ontario said it would suspend its 25% surcharge and meet with U.S. Commerce Secretary Howard Lutnick on Thursday, March 13.

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President Donald Trump announced he will double planned tariffs on Canadian steel and aluminum from 25% to 50%, taking effect Wednesday, March 12. His doubling down is in response to Canada’s 25% electricity export tariff.

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In response to Trump’s threat, Ontario said Tuesday afternoon the province would suspend the 25% electricity surcharge and meet with U.S. Commerce Secretary Howard Lutnick to discuss a renewed trade agreement on Thursday, March 13.

Please see a joint statement from United States Secretary of Commerce Howard Lutnick and myself:

Today, United States Secretary of Commerce @howardlutnick and Premier of Ontario Doug Ford had a productive conversation about the economic relationship between the United States…
— Doug Ford (@fordnation) March 11, 2025

“Today, United States Secretary of Commerce [Howard Lutnick] and Premier of Ontario Doug Ford had a productive conversation about the economic relationship between the United States and Canada,” the joint statement from Lutnick and Ford reads. “In response, Ontario agreed to suspend its 25 per cent surcharge on exports of electricity to Michigan, New York and Minnesota.”

The Canadian province of Ontario first announced the retaliatory electricity charge on Monday, March 10. Premier Doug Ford said the 25% surcharge on electricity exports to Michigan, Minnesota and New York would affect electricity sales to 1.5 million American homes and cost businesses and residents up to $400,000 per day.

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“I will shortly be declaring a National Emergency on Electricity within the threatened area,” Trump said on Truth Social. “This will allow the U.S. to quickly do what has to be done to alleviate this abusive threat from Canada.”

It’s not just about electricity

Trump also took aim at Canada’s import tariffs on U.S. dairy products that exceed 200%. The Canadian policy charges such tariffs if imports go above a pre-negotiated amount of tariff-free dairy sales. The International Dairy Foods Association said these tariffs have not been charged.

“Frustratingly, the U.S. has never gotten close to exceeding our USMCA quotas because Canada has erected various protectionist measures that fly in the face of their trade obligations made under USMCA,” the International Dairy Foods Association said.

Trump said his doubling of tariffs on steel and aluminum to 50% is just the start if Canada continues to retaliate against the U.S.

“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!” Trump wrote.

Canada and the 51st state

The president again reiterated his position Tuesday, March 11, that Canada should become the 51st state of the United States.

“America is not Canada. And Canada never ever will be part of America in any way, shape or form,” incoming Canadian Prime Minister Mark Carney said Sunday, March 9. “We didn’t ask for this fight, but Canadians are always ready when someone else drops the gloves.”

This story was updated to reflect Ontario’s announcement of suspending the electricity surcharge.

Tags: aluminum, Auto industry, Automakers, Canada, dairy, Donald Trump, Doug Ford, Electricity, Mark Carney, Ontario, Steel, Tariff, Tariffs, United States

[SIMONE DEL ROSARIO]

President Donald Trump announced he will double planned tariffs on Canadian steel and aluminum from 25% to 50%. He says those tariffs will take effect Wednesday. The doubling down is in retaliation to Canada’s 25% surcharge on electricity exports.

[DOUG FORD, ONTARIO PREMIER]

“Until these tariffs are off the table, until the threat of tariffs is gone for good, Ontario will not relent.”

[SIMONE DEL ROSARIO]

Ontario announced the retaliatory electricity charge on Monday. Premier Doug Ford says he’s adding a 25% surcharge to electricity exports to Michigan, Minnesota and New York. The electricity Ontario sends powers 1.5 million American homes.

[DOUG FORD, ONTARIO PREMIER]

“This surcharge will cost families and businesses in these states up to $400,000 each and every single day. On an average, this will add around $100 per month to the bills of hard working Americans.”

[SIMONE DEL ROSARIO]

On top of doubling tariffs on steel and aluminum in response, Trump said on Truth Social, he’ll 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.”

[DOUG FORD, ONTARIO PREMIER]

“If the United States escalates, I will not hesitate to shut the electricity off completely. Believe me when I say I do not want to do this. I feel terrible for the American people because it’s not the American people who started this trade war. It’s one person who’s responsible. That’s President Trump.”

[SIMONE DEL ROSARIO]

In response, Trump said, “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!”

Wall Street continued its decline Tuesday as Canada and the U.S. escalated this trade fight. On Monday, the Nasdaq posted its worst day since 2022 after the president declined to rule out the possibility of a recession. He said what he’s doing with trade takes time.

[PRESIDENT DONALD TRUMP]

“I hate to predict things like that. There is a period of transition because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing. And there are always periods of, it takes a little time. It takes a little time.”

[SIMONE DEL ROSARIO]

On Tuesday, Trump also took aim at Canada’s import tariffs on U.S. dairy products that exceed 200%. The Canadian policy charges such tariffs if imports go above a pre-negotiated amount of tariff-free dairy sales set by the USMCA.

The International Dairy Foods Association says these tariffs have not been charged. “Frustratingly, the U.S. has never gotten close to exceeding our USMCA quotas because Canada has erected various protectionist measures that fly in the face of their trade obligations made under USMCA.”

Trump said his doubling of tariffs on steel and aluminum to 50% is just the start if Canada continues to retaliate against the U.S.

Share prices for the “Big Three” automakers, Ford, GM and Stellantis, all fell during trading Tuesday. For SAN, I’m Simone Del Rosario. To stay on top of the rapid moves with tariffs and the markets, download the SAN app and enable notifications.

Ontario suspends electricity surcharge after Trump doubles Canada tariffs

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