In a joint statement, Lutnick and Ford said they have agreed to meet formally in Washington on Thursday
OTTAWA — Ontario Premier Doug Ford announced Tuesday that he has agreed to suspend the 25 per cent tariffs he imposed on the United States and will meet with U.S. Commerce Secretary Howard Lutnick, alongside Canadian Finance Minister Dominic LeBlanc, this week.
Ontario’s surcharge on electricity exports in Michigan, Minnesota and New York led to an invitation from Lutnick to meet formally in Washington on Thursday “alongside the United States Trade Representative to discuss a renewed USMCA ahead of the April 2 reciprocal tariff deadline.”
Premier Ford imposed these tariffs to retaliate against President Trump’s 25 per cent tariff on all Canadian goods. The measure was supposed to be implemented last week, but the Americans suspended it for 30 days.
“By no means are we just going to roll over,” he said. “We don’t roll over to anyone. What we are going to do is have a constructive conversation moving forward.”
“Cooler heads have to prevail,” he added.
Ford said that Prime Minister-designate Mark Carney was leading Canada’s effort along with Finance Minister Dominic LeBlanc. Ford confirmed he would be speaking with Carney Wednesday morning.
“They will be leading the charge there. But Ontario plays a massive role,” Ford said at a press conference. Kirsten Hillman, Canada’s ambassador to the U.S., may also attend the meeting.
The invitation represented a dramatic change in a day of uncertainty on both sides of the border.
President Trump had previously lashed out at Canada over its trade practices, threatening to impose 50 per cent tariffs on Canadian steel and aluminum, up from his previous threat of 25 per cent, effective Wednesday.
He said that if Canada did not reverse its retaliation and “immediately” remove its dairy tariffs, he would “significantly” increase tariffs on cars coming from Canada to the United States on April 2. Trump then reiterated his goal to annex Canada and make it a 51st state.
In Ottawa, the move was perceived as another attack on Canada’s economy and sovereignty.
“Should the United States move forward tomorrow with the imposition of tariffs on Canadian products, including steel and aluminum, we will be ready to respond firmly and proportionately,” said minister LeBlanc’s spokesperson, Gabriel Brunet.
Though, it appears that the president had calmed down later in the afternoon. Trump described Ford as a “gentleman,” a “very strong man,” and that he “respects” him and his decision to suspend the electricity surcharge.
A White House spokesperson, Kush Desai, confirmed at the end of the day that the 50 per cent tariff would not be put in place on Wednesday.
“Pursuant to his previous executive order, a 25 per cent tariff on steel and aluminum with no exceptions and no exemptions will go into effect for Canada and all of our trading partners at midnight, March 12,” said Desai.
Canada is one of the leading nations when it comes to aluminum production. The country has nine smelters, which eight of them are in Quebec. The country’s 9,500 Canadian aluminum workers produce the metal that is processed, transformed and fabricated into parts, components, and everyday products by more than 700,000 American workers.
According to the Canadian Aluminum Association, it generates more than $228 billion in economic output in the US economy alone.
As for the steel industry, Canadian producers say trade between the two countries is close to $20 billion, and 40 per cent of Canada’s steel imports come from the United States, while Canadian steel supplies 20 per cent of U.S. demand.
“The critical issue with tariffs is that our two steel sectors are very integrated, and so we will continue to work to get back to a space where our border is tariff-free,” said Edward Hutchinson, the Canadian Steel Producers Association’s spokesperson.
The Trump administration’s constant threats to tariff Canada, Mexico and nations around the world have brought the markets in a tumultuous period, especially since last week.
Ford said by launching a trade war, Trump was working against his stated mandate of lowering prices for Americans.
He also said the president should address any trade concerns with Canada, such as when it comes to its dairy products, by renegotiating the free trade deal it has with Canada and Mexico, which is due for review next year.
It was under Trump’s first term in office that the U.S., Canada and Mexico struck a new free trade agreement, replacing the North American Free Trade Agreement, which had been in place since the early 1990s.
Alberta Premier Danielle Smith said on social media that she and other premiers want a meeting with the prime minister-designate “to discuss the recent escalation in the trade dispute with the U.S.” Smith was in Houston this week speaking with U.S. administration officials and energy industry leaders, and said “literally everyone we speak with wants to de-escalate this trade dispute”.
Smith said she planned to raise the issue when she speaks with other premiers on Wednesday, where she says she will be advocating “for a measured and proportional response going forward that focuses on deescalating this dispute on both sides of the border.”
Saskatchewan Premier Scott Moe said in a statement that it was looking for ways to support the province’s steel industry.
“Trump’s latest announcement in his constantly changing tariff attack will be another significant blow to Saskatchewan and Canadian steel producers if they remain in effect for any length of time.”
National Post
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