Canada and US to discuss renewed USMCA following tariff de-escalation

In a major development on Tuesday, Ontario, Canada, suspended its 25% surcharge on exports of electricity to Michigan, New York, and Minnesota. Premier Doug Ford also said that he, US Secretary of CommerceHoward Lutnick, and the United States Trade Representative will meet on March 13 to discuss a renewed USMCA ahead of the April 2 reciprocal tariff deadline. Ford announced the move on X and indicated that he and Lutnick had a “productive conversation about the economic relationship between the United States and Canada.”

The announcement followed US President Donald Trump’s threat Tuesday morning that tariffs on Canadian steel and aluminum imports would increase from 25% to 50% starting March 12. Trump said he would declare a “national emergency” in the three states and posted to Truth Social, “Why would our Country allow another Country to supply us with electricity, even for a small area? Who made these decisions, and why? And can you imagine Canada stooping so low as to use ELECTRICITY, that so affects the life of innocent people, as a bargaining chip and threat?”

In response to Ford’s suspending the electricity surcharges from Ontario, Trump reversed course late Tuesday, revoking his imposition of the additional 25% tariffs on Canadian steel and aluminum. But the planned 25% tariff on the industry will still go into effect on Wednesday.