Premier Doug Ford announced Ontario is suspending the 25% electricity surcharge, which was previously announed this week.
The Premier said he is also set to meet with U.S. Secretary of Commerce Howard Lutnick this week.
Ford said on X he had a “productive conversation about the economic relationship between the United States and Canada” with Lutnick.
“Secretary Lutnick agreed to officially meet with Premier Ford in Washington on Thursday, March 13 alongside the United States Trade Representative to discuss a renewed USMCA ahead of the April 2 reciprocal tariff deadline,” the Premier wrote on X.
“In response, Ontario agreed to suspend its 25 per cent surcharge on exports of electricity to Michigan, New York and Minnesota.”
Ford added in a separate post on Tuesday: “After Canadians stood firm, Secretary Lutnick today extended an olive branch. I’m going to work with him in good faith toward a free trade deal that’s fair for both countries.”
As previously reported on March 10, 2025, the Ontario government applied a 25 per cent surcharge on all electricity exports to the United States as part of the province’s initial suite of retaliatory measures to U.S. tariffs on Canada.
Provincial officials say this surcharge would affect 1.5-million homes and businesses in Michigan, Minnesota and New York, costing up to $400,000 every day the surcharge remains in place.
“President Trump’s tariffs are a disaster for the U.S. economy. They’re making life more expensive for American families and businesses,” said Premier Doug Ford at the time.
“Until the threat of tariffs is gone for good, Ontario won’t back down. We’ll stand strong, use every tool in our toolkit and do whatever it takes to protect Ontario.”
Before the suspension, Provincial official said the new market rules were in effect, requiring any generator selling electricity to the U.S. to add a 25 per cent surcharge valued at $10 per megawatt-hour (Mwh) to the cost of power. At this level, the surcharge would generate revenue of $300,000 to $400,000 per day, which will be used to support Ontario workers, families and businesses, Provincial officials added.
The government will use every tool at its disposal to protect Ontario workers and families from President Trump’s tariffs, including increasing this surcharge at any time or, if the U.S. escalates, cutting off electricity exports to the U.S. completely, Provincial officials said on Monday.
“For decades, Ontario has powered American homes, factories, offices and jobs, and we will not stand by as our vital electricity exports are taken for granted,” said Stephen Lecce, Minister of Energy and Electrification, in a media release.
“In a time where prices are going up for families in America, Canada and the United States should be working together to strengthen our trade and investment relationships to ensure a prosperous future for both sides of the border.”
The new surcharge was in addition to the Government of Canada imposing an initial round of $30-billion in retaliatory tariffs.
In Ontario, LCBO, the largest buyer of alcohol in the world, has removed all United States products from its shelves, costing American producers $1-billion in lost revenue, Provincial officials added.
Ontario has also banned U.S. companies from participating in an estimated $30-billion worth of annual government procurement.
Provincial officials added Ontario currently exports electricity generated across the province directly to Michigan, New York and Minnesota.
Between 2021 and 2023, Ontario exported 14.6, 14.2 and 12.0 terawatt hours of electricity to the United States.
Ontario has 26 transmission connections with neighbouring jurisdictions: 11 with Quebec, three with Manitoba, one with Minnesota, four with Michigan and seven with New York.
