Staff Reports
Ontario’s latest theatrics reveal the delicate dance of diplomacy between the Great White North and the good ol’ U.S. of A. The Canadian province quickly retreated from its tough-talking stance of slapping a surcharge on electricity exports to a trio of American states after President Trump put the heat on with threats of doubling tariffs on Canadian goods. It’s a classic case of “Oops, we may have overplayed our hand,” and it didn’t take much for Ontario’s Premier Doug Ford to realize that poking the bear is less than wise.
The chatter between Doug Ford and U.S. Secretary of Commerce Howard Lutnick culminated in a formal announcement that they had enjoyed a “productive conversation.” It seems even the most heated arguments can turn civil, especially when confronted with the prospect of losing a lot of money. They even scheduled a cozy meeting in Washington to discuss the USMCA. This warm-up might just be what they need before the deadline for reciprocal tariffs hits like a freight train on April 2. Ford sweetened the deal by agreeing to suspend the eyebrow-raising 25 percent surcharge on electric exports to Michiganders, New Yorkers, and Minnesotans—states that definitely don’t want to be cut off from their power.
On the same day, the President, being no stranger to keeping the pressure on, took to Truth Social to announce further tariffs on Canadian steel and aluminum as a firm response to Canada’s electricity move. The Commander-in-Chief didn’t mince words, labeling Canada as a “Tariff abuser.” Many savvy observers might even note that this was Trump’s preferred approach: using tariffs as leverage to maneuver opponents back to a more favorable balance. After all, when one party starts to play dirty, sometimes the only way to play it is harsher.
That didn't take long …
BREAKING: Ontario Bows Down to Trump in Tariff War https://t.co/7Pa1mX4kFo— MWP (@MWPmuch) March 11, 2025
As for how this dance will play out, the jury is still out on whether Canada’s initial tariff will stick like glue or wobble under the pressure. However, it is apparent that President Trump’s ability to threaten consequences had a significant impact, prompting an abatement of Ontario’s electricity surcharge. It’s like watching a game of chicken where one player realized that the other wasn’t bluffing. Nothing like good ol’ American toughness to make international relations feel a little less cordial.
The looming meetings and discussions about tariffs might just lead to a resolution beneficial for both sides, but it’s clear that President Trump’s strategy to wield tariffs is producing real results. Throwing down the gauntlet can lead to surprising changes in policy, especially when the stakes involve electricity, trade, and the almighty dollar. If Ontario had any doubts about stepping on the toes of the U.S. market, they were swiftly laid to rest. The king of tariffs has spoken, and it seems things are about to get a bit more electric on the trade front.
