Prime Minister Doug Ford announced Tuesday afternoon that the province would be outages on electricity, initially intending to target U.S. states including Michigan, New York and Minnesota.
The decision was shortly after U.S. President Donald Trump threatened to impose high tariffs on Canadian steel and aluminum on Ontario’s move.
In his White House speech, Trump acknowledged the reversal of Ontario and suggested that he might expand planned steel and aluminum tariffs as a result. “He’s already called and he said he won’t do that. If he does that, it’s going to be a very bad thing, but he won’t do that. So, I respect that,” Trump said of Ford’s decision.
The escalation intensified when Trump announced double tariffs on Canadian steel and aluminum on the truth society, announcing “national electricity” if Ontario continues to carry out surcharges.
Ford, citing a “productive dialogue” with U.S. Commerce Secretary Howard Lutnick, will meet with U.S. officials in Washington on Thursday to discuss ongoing trade issues and the new USMCA trade agreement.
Despite the suspension of electricity bills, Ford noted that this is still a measure available if negotiations fail. “With any negotiation, both parties heat up and the temperature needs to drop,” Ford explained. “We agree to let cool heads prevail.”
Ontario provides power to approximately 1.5 million households in the United States, making trade disputes particularly important. Observers noted that continued volatility may continue to affect the market and work in Canada, especially in areas such as steel, aluminum and automobile manufacturing.
Stock markets have “have had enough”
The U.S. index felt particularly pinched in amid trade tensions.
Robert Kavcic, senior economist at BMO, noted that recent market volatility reflects concerns about growth and ongoing trade disruptions, especially impacting technology stocks that have been actively valued.
“In the face of a trade war, stock markets continue to sell,” Kavsic wrote in the study summary. “While the tariffs themselves are negative – effective for both growth and inflation, the tone of the U.S. government could cause greater harm.”
Kavcic noted that the Canadian market is somewhat resilient, thanks to early adjustments in valuations and increased spending in areas such as government and defense.
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Canada – US Trade War Donald Trump Doug Ford Howard Lutnik Robert Krafsic Trade War Trump’s tariffs
Last modified: March 11, 2025
