As Ontario implements a 25 per cent surcharge on electricity headed to the U.S., President Donald J. Trump escalated the trade war by threatening to add 50 per cent tariffs on steel and aluminum set to come into effect Wednesday morning.
Ontario Premier Doug Ford and Minister of Energy and Electrification Stephen Lecce justified Ontario's surcharge on Monday morning, the same day it came into effect.
“We will stand up and fight, and that includes taking our message directly to the American people,” Lecce said, beginning the conference, “that we can be stronger together, that our economies are built on shared trade investments, democratic values and cooperation.”
Lecce said the new fee on Ontario electricity is a tool the province is directly using as a response to Trump’s tariffs on Canadian goods.
“We’ve kept the lights on in American homes, in American factories and farms. But when we as Canadians are under attack, we will use every tool in our toolbox to fight back for the good of Ontario and Canadians, and today we sent that message,” he said.
When the microphone was turned to Ford, he was quick to mention the ongoing tariff situation.
“For weeks now, we’ve been faced with so much uncertainty coming from President Trump,” he said. “Each day brings new tariff threats.”
Ford said that until tariffs and the threats of them are permanently gone, Ontario will not relent in its responses.
“We will not back down. Pausing some tariffs, making last minute exemptions, it won’t cut it, we need to end the chaos once and for all,” he said.
Ford said Ontario exports power to Minnesota, Michigan and New York, and the 25 per cent surcharge will affect about 1.5 million American homes and businesses.
He said the added fee will total an accumulative amount of up to $400,000 every day, and average out to around $100 every month to the bills of affected Americans.
Ford said he will increase the fee if the tariff threat with the U.S. continues to get worse.
“I will not hesitate to increase this charge if necessary,” he said. “If the United States escalates, I will not hesitate to shut the electricity off completely.
“It doesn’t have to be this way, we are stronger when we work together,” Ford said.
Trump responded to the decision from Ontario in the form of multiple posts on the platform Truth Social, which is owned by Trump Media.
In his first response, posted Monday night, Trump said the 25 per cent surcharge was not allowed, and stated America does not need cars, lumber or electricity from Canada and saying Canada would find that out very soon. The U.S. is Canada's largest steel and aluminum customer, importing 5.95 million tonnes in 2024 and 3.15 million tonnes respectively in 2024.
The increasing antagonism between nations kicked the Dow Jones Industrial Average, losing about 708 points or 1.7 per cent of its value by 1:30 p.m. The DJIA managed to regain some of its losses by end of trading day.
In another response posted Tuesday morning, Trump said he intends to double the current tariff on all steel and aluminum Wednesday morning.
Further in the latest post were more comments from Trump regarding Canada as a potential “51st state,” for the U.S., a topic which has recently caused high controversy and heightened tensions between the two nations on top of the tariff threats.
