Canada buckles on electricity tariffs after Trump threatens country would pay big 'financial price'

By 
 March 12, 2025

President Donald Trump is certainly not shy about imposing tariffs on other countries to help the American economy, even neighbors like Canada. And it's a beautiful thing.

According to the Daily Mail, as the tariff battles escalate, Canada recently folded on one tariff issue, which was the threat of imposing a 25% tariff on electricity distributed to Michigan, New York and Minnesota.

The tariff on electricity to those states was announced on Monday, and it only took a few days for Canada to fold on the issue after Trump counter-attacked with the threat of stiff financial penalties.

Just hours after Trump threatened the country would pay a big "financial price" for continuing with the electricity tariffs, Ontario Premier Doug Ford announced that they had been canceled.

What's going on?

Ford announced that he had spoken with Commerce Secretary Howard Lutnick about the situation and the two parties came to an agreement regarding the reciprocal tariffs that the president wants to put into action starting April 2.

"In response, Ontario agreed to suspend its 25 percent surcharge on exports of electricity to Michigan, New York and Minnesota," Ford announced earlier this week.

As a result of Canada backing down on the tariffs, Trump agreed to not double tariffs on Canadian steel and aluminum, which would have gone from 25% to 50%. They will reportedly remain at 25%.

The Daily Mail noted:

Earlier Tuesday Trump declared a national emergency on electricity in the United States and doubled the tariffs on aluminum and steel from Canada after Ford enacted the electricity tariff.

The president, in a lengthy post on his Truth Social account, also threatened to 'permanently shut down' the Canadian auto sector.

The 47th president also reiterated his call for Canada to become America's 51st state in a Truth Social post.

"Canada should honestly become our 51st state. we wouldn't have a northern border problem. We wouldn't have a tariff problem," Trump wrote. "Canada would be great as our cherished 51st state. You wouldn't have border problems. You wouldn't have anything."

Trump went nuclear

In the wake of the announcement of electricity tariffs, Trump let his feelings on the matter be known.

"Based on Ontario, Canada, placing a 25% Tariff on 'Electricity' coming into the United States, I have instructed my Secretary of Commerce to add an additional 25% Tariff, to 50%, on all steel and aluminum coming into the United States from Canada, one of the highest tariffing nations anywhere in the world," Trump wrote earlier this week.

He added, "I will shortly be declaring a National Emergency on Electricity within the threatened area."

It's amazing to see a leader negotiate and work deals the way Trump does it, with America always coming out on top.

" A free people [claim] their rights, as derived from the laws of nature."
Thomas Jefferson