Staff Reports
Ontario Premier Doug Ford’s ambitious plan to slap a hefty 25% surcharge on electricity exports to U.S. communities met with a swift response from former President Trump, who was not about to let Canada take a bite out of American consumers without a fight. In classic Trump fashion, he threatened to raise tariffs on Canadian steel and aluminum from 25% to a staggering 50%, effectively reminding our neighbor to the north who wears the economic pants in this arrangement. This resulted in Premier Ford making a rapid retreat, proving once again that when it comes to trade negotiations, Trump’s red pen is more powerful than Ford’s calculator.
Following a conversation with U.S. Commerce Secretary Howard Lutnick, Ford suddenly discovered that maybe another price hike wasn’t the best marketing strategy after all. The White House, ever the consummate negotiators, announced that the steel and aluminum tariffs would stay at 25%—for now. A spokesperson indicated that Trump’s strategic leverage demonstrated just how potent the U.S. economy is, reinforcing the notion that American tactics can yield results even in the most tumultuous trade skirmishes.
Trump’s bombastic response to Ford’s surcharge, which came on the heels of a questionable trade spat, included an emergency declaration for U.S. regions affected by said surcharge. When a president is willing to spring into action over an electricity fee, it suddenly raises the stakes—and sends a clear message to Canada that American patience is finite. One has to wonder if Canada is regretting poking the bear when data suggests they might be more under the thumb of U.S. economic policies than they’d like to admit.
Ontario Premier Doug Ford backs down on Canadian electricity surcharge in wake of Trump escalation threathttps://t.co/BAXMtntEQD pic.twitter.com/vsuJeEnldZ
— The Washington Times (@WashTimes) March 12, 2025
But that was just the beginning. Trump didn’t stop with electricity—he issued a fiery ultimatum about Canadian tariffs on agricultural products, indicating that unless Canada drops those hurdles, they could see auto tariffs that might well throw a wrench in their entire car manufacturing landscape. His point was clear: “Those cars can easily be made in the USA,” signaling that American workers should bear the brunt of making things, not their less-than-good neighbors to the north.
The trade war narrative is a double-edged sword in the world of finance, especially as Wall Street watches and holds its breath. The recent swings in the stock market only highlight the uncertainty surrounding trade policies as investors grapple with the fallout of these tariffs. But the White House isn’t fretting about market fluctuations; instead, they focus on shaking off the remnants of the Biden era policy that left American businesses feeling neglected. With President Trump reminding everyone that incumbent economic challenges are hardly his fault, Ford’s initial misstep illustrates just how easily Canada can be put in its place when it steps out of line—proving once again that it’s a dog-eat-dog economic world, and in this showdown, Trumps has the bite, while Canada has oh-so-quickly learned its place.
