Canada blinked.
Faced with President Donald Trump’s threat to double tariffs on Canadian steel and aluminum, Ontario Premier Doug Ford has backed down from a proposed 25% surcharge on electricity exports to the United States. The move, which would have impacted states like Minnesota, New York, and Michigan, was scrapped after a single phone call with Commerce Secretary Howard Lutnick.
In a joint statement, Ford and Lutnick called it a “productive conversation,” though the reality is clear: Canada made a threat, Trump called their bluff, and now they’re retreating.
Trump, never one to let a trade dispute simmer quietly, took to Truth Social on Tuesday, making it clear that retaliation would be swift and severe. New 50% tariffs on Canadian steel and aluminum were set to take effect Wednesday morning, and he warned that if Canada continued down this road, tariffs on Canadian cars would be next.
And then came the national emergency threat.
“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? They will pay a financial price for this so big that it will be read about in History Books for many years to come!”
Within hours, Ford folded, agreeing to suspend the electricity surcharge.
Meanwhile, Mark Carney, Canada’s newly elected prime minister and successor to Justin Trudeau, took a much tougher stance, vowing to keep tariffs in place until the U.S. “shows us respect”.
“President Trump’s latest tariffs are an attack on Canadian workers, families, and businesses,” Carney posted on X.
But Trump is making it clear that the old Trudeau-era status quo is over. He blasted Canada for exploiting U.S. farmers, pointing specifically to Canada’s “Anti-American Farmer Tariff” on U.S. dairy products, which he called “outrageous.” He also took aim at Canada’s reliance on the U.S. for national security, noting that America subsidizes Canada by more than $200 billion per year.
And then came the Trumpian twist—one that sent shockwaves through Ottawa.
“The only thing that makes sense is for Canada to become our cherished Fifty First State. Their brilliant anthem, ‘O Canada,’ can continue to play representing a great and powerful state.”
Trump’s aggressive trade policy isn’t just about tariffs—it’s about securing America’s economic and national interests. The new wave of tariffs against Canada, Mexico, and China is aimed at stopping the flow of fentanyl into the United States—a crisis that has cost hundreds of thousands of American lives.
While Ford backed down quickly, Carney is still posturing, hoping to maintain some leverage. But the reality is this:
- Trump is willing to escalate this fight.
- Canada depends on U.S. trade far more than the U.S. depends on Canada.
- Ottawa is running out of options.
