Canada has caved to President Donald Trump after he vowed the nation would pay an unprecedented “financial price” for imposing a huge retaliatory electricity tariff on the United States.
In response to Trump’s warning, Ontario Premier Doug Ford said he would cut the 25% tariff on Canadian electricity to Michigan, New York, and Minnesota.
Ford put the huge tax in place on Monday in response to earlier tariffs from Trump.
In a statement, Ford noted that he had been speaking with Trump’s Commerce Secretary Howard Lutnick about the situation.
The two men agreed to meet this Thursday alongside the United States Trade Representative to discuss reciprocal tariffs that Trump wants to put in place on April 2.
“In response, Ontario agreed to suspend its 25 percent surcharge on exports of electricity to Michigan, New York and Minnesota,” Ford said.
Earlier Tuesday, Trump declared a national emergency on electricity in the United States after Ford enacted the tariff.
Trump also doubled the tariffs on aluminum and steel from Canada.
In a lengthy post on Truth Social, the president also threatened to “permanently shut down” the Canadian auto sector.
The only thing to make his tariffs stop is for Canada to become the 51st state, he warned as he ramped up the trade war.
The increase in tariffs, from 25% to 50%, will go into effect on Wednesday, Trump threatened.
“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,” Trump declared.
“I will shortly be declaring a National Emergency on Electricity within the threatened area,” he added.
Trump’s fury continued in a second post, where he warned that Canada would pay a “financial price” for its electricity tariff.
Many states in the Northeast buy supplemental energy from Canada.
“Why would our Country allow another Country to supply us with electricity, even for a small area?” Trump mocked.
“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!” Trump warned.
Trump is pushing for Canada to drop its retaliatory tariffs on U.S. dairy and agricultural products.
“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,” he said.
“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,” he wrote.
Trump has argued that his tariffs are a transition into a much stronger long-term economy.
However, the president said he couldn’t rule out a potential recession.
“I hate to predict things like that,” Trump said on Fox News’s “Sunday Morning Futures.”
‘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. But I don’t — I think it should be great for us.
“I mean, I think it should be great.”
Trump has said the tariffs are focused on stopping deadly fentanyl trafficking into the United States.
“Justin Trudeau of Canada called me to ask what could be done about Tariffs,” Trump wrote on Truth Social.
“I told him that many people have died from Fentanyl that came through the Borders of Canada and Mexico, and nothing has convinced me that it has stopped.
“He said that it’s gotten better, but I said, ‘That’s not good enough.'”
On Sunday, Mark Carney was elected the new head of Canada’s ruling Liberal Party.
The victory puts Carney in line to replace Trudeau as the next prime minister in the coming days.
Following his victory, Carney immediately vowed to “fight” on Trump, as Slay News reported.
“America is not Canada, and Canada never, ever, will be part of America in any way, shape or form,” he said in his victory speech.
“We didn’t ask for this fight, but Canadians are always ready when someone else drops the gloves.”
