Canadian Premier shares statement in major U-turn after slapping huge tax increase on electricity for Americans

Ontario Premier Doug Ford threatened to hike electricity bills across New York, Michigan and Minnesota

A Canadian Premier has seemingly had a change of heart after threatening to slap a huge levy on electricity to the homes and businesses of 1.5 million American citizens.

Ontario Premier Doug Ford has become a key figure in the growing trade war between Canada and the US, taking a defiant stand against President Donald Trump’s aggressive tariff policies.

The conflict ignited when Trump imposed a series of ‘catastrophic’ tariffs on his neighboring countries, citing drug trafficking and immigration as justifications. Trump added fuel to the fire by suggesting that Canada could avoid these tariffs if it became the 51st state, taunting former Prime Minister Justin Trudeau with the nickname “Governor of Canada”. In retaliation, Canadian officials warned of counter-tariffs on US goods.

Premier Ford, in a show of defiance, canceled a $100 million contract with Elon Musk and vowed to take aggressive actions, including increasing mineral export taxes and imposing a 25 percent surcharge on electricity supplying 1.5 million homes and businesses in states like New York, Michigan, and Minnesota. Ford even warned he could shut off the power supply completely if Trump continued to escalate tensions.

However, with Trump’s new 25 percent tariffs on steel and aluminum kicking in today (March 12), and a threat to double the tariffs to 50 percent, it seems Ontario is reconsidering its stance, possibly backing down—for now.

Doug Ford has slammed the brakes on the electricity tariff (Katherine KY Cheng/Getty Images)

In a joint statement released by Ontario Premier Doug Ford and US Commerce Secretary Howard Lutnick, the two leaders shared that they had a ‘productive conversation’ regarding their economic relations. They also revealed plans to meet again on March 13 to discuss renewing the US-Mexico-Canada Free Trade Agreement (USMCA) ahead of President Trump’s reciprocal tariff deadline on April 2.

“Ontario has agreed to suspend its 25 percent surcharge on electricity exports to Michigan, New York, and Minnesota,” Ford’s Twitter statement clarified.

In a surprising twist, President Trump has now paused his hardline stance, even calling Ford a ‘strong man’ amid the tense standoff. Trump expressed his approval to reporters, saying:

“As you know, there’s a very strong man in Canada who said he was going to charge a surcharge or a tariff on electricity coming into our country. He has called, and he said he’s not going to do that. He’s not going to do that. And it would’ve been a very bad thing if he did, and he’s not going to, so I respect that.”

This change of heart came just hours after Ford had issued an apology to ordinary Americans who would have been impacted by the Canadian tariffs, while vowing to launch ‘relentless’ counterattacks if necessary.

The POTUS has welcomed Canada's U-turn on the surcharge (Alex Wong/Getty Images)

Premier Doug Ford has warned that his proposed 25 percent surcharge on electricity exports could result in a staggering $400,000 in daily revenue, with the potential to add up to $1,200 to the annual electric bills of hardworking Americans. “If the United States escalates, I will not hesitate to shut the electricity off completely,” Ford stated firmly. “Believe me when I say I do not want to do this. I feel terrible for the American people, because it’s not them who started this trade war.”

He continued, placing the blame squarely on President Trump: “It’s one person who’s responsible. That’s President Trump.”

In an interview with Fox Business, Ford reiterated his frustration: “Isn’t this a shame? It’s an absolute mess… he’s created chaos.”

Incoming Canadian Prime Minister Mark Carney has also expressed his commitment to confronting the trade war, calling it the ‘greatest crisis’ Canada has faced in recent times. According to Carney, these taxes represent a monumental challenge for the nation.