Ontario has eliminated its 25 percent surcharge on electricity exports to several U.S. states in a major policy shift. The decision eases tensions after President Trump threatened tariffs on Canadian goods over trade imbalances. It promises lower energy costs for American consumers in states like Michigan and New York.
Premier Doug Ford announced the change following negotiations with U.S. officials to avoid a trade war. The surcharge had inflated prices for U.S. utilities reliant on Ontario’s hydropower. Trump’s tariff threats reportedly spurred Ford to act swiftly to protect cross-border ties.
The move benefits U.S. states that import over 60 percent of their electricity from Ontario. Households and businesses could see bills drop as early as next month. Ford framed it as a goodwill gesture to strengthen economic bonds with America.
Trump praised the decision as a win for his tough stance on fair trade deals. He had criticized Canada’s energy pricing as punitive to U.S. interests. Ontario’s reversal aligns with his push to renegotiate terms with trading partners.
Energy analysts predict the surcharge drop will boost U.S. manufacturing competitiveness. Cheap reliable power has been a sticking point in trade talks with Canada. Some warn Ontario may face revenue losses without the extra charge.
Ford faced pressure from Trump’s earlier 50 percent tariff hike on Canadian steel and aluminum. He argued the surcharge rollback prevents further escalation harming both economies. U.S. officials hailed it as a step toward freer markets.
American utilities had lobbied against the charge citing its burden on ratepayers. Ontario’s hydropower accounts for a key share of their clean energy mix. The policy shift could stabilize prices amid rising demand in the U.S. northeast.
Trump linked the victory to his broader goal of putting America first in global trade. He suggested more Canadian concessions could follow if relations improve. For now U.S. consumers reap the rewards of Ontario’s electric olive branch.
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