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Fact check: Ontario suspends 25% electricity surcharge for US customers after Trump ups aluminum, steel tariff

Checked on March 12, 2025

1. Summary of the results

The statement is fundamentally accurate but lacks crucial context. Ontario did suspend its 25% electricity surcharge following negotiations between Ontario Premier Doug Ford and US Commerce Secretary Howard Lutnick [1]. The suspension specifically affected electricity exports to Minnesota, New York, and Michigan [2]. This decision came after President Trump threatened 50% tariffs on Canadian steel and aluminum [1].

2. Missing context/alternative viewpoints

Several important contextual elements are missing from the original statement:

  • The electricity surcharge was initially implemented as a retaliatory measure against US tariffs and was expected to generate $300,000-$400,000 daily, potentially increasing US household electricity costs by $100 per month in affected states [3]
  • Premier Ford had initially taken a more aggressive stance, even threatening to completely cut off electricity if US tariffs escalated [4]
  • The suspension is temporary in nature, with plans for further discussions about future economic relations [5]
  • The impact on electricity supply was expected to be minimal for US states, as most utilities had alternative power sources [2]
  • The decision came after Ford received an "olive branch" from Lutnick and an invitation to Washington for discussions [6]

3. Potential misinformation/bias in the original statement

The original statement presents an oversimplified view of a complex trade negotiation:

  • It suggests a direct cause-and-effect relationship between Trump's tariffs and Ontario's response, when in reality, the suspension came after diplomatic negotiations with Commerce Secretary Lutnick [7]
  • It fails to mention that this was part of a broader strategic move in an ongoing trade dispute between Canada and the United States [7]
  • The statement doesn't acknowledge that the suspension was part of a larger negotiation strategy, with Trump indicating he might scale back steel and aluminum tariffs in response [5]
  • The economic implications for both sides are not mentioned, despite being a crucial factor in the decision-making process [3]

Both US manufacturing interests and Canadian electricity producers would have financial stakes in how this trade dispute is portrayed and resolved.

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