(NewsNation) — Ontario Premier Doug Ford said he is suspending the 25% tariff on electricity from Canada on Michigan, New York and Minnesota, on Tuesday.
This comes after what Ford said was a “productive” conversation with U.S. Commerce Secretary Howard Lutnick. In a joint statement, the two said they talked about “the economic relationship between the United States and Canada.” Previously, Ford had threatened to cut off electricity imports to the U.S.
More than 1.5 million American homes and businesses had been affected by the energy price hikes, according to the Associated Press.
President Donald Trump on Tuesday, before Ford’s announcement, threatened to double his tariffs on steel and aluminum from 25% to 50% for Canada. A White House spokesperson said, after Lutnick and Ford spoke, that this is no longer happening, but the 25% tariff will still go into effect at midnight on Wednesday.
Trump said he “appreciated the call” between Ford and Lutnick.
Trump’s spate of tax increases on imports has made the stock market fall and stirred up recession risks. When asked by a reporter whether his tariff policy has anything to do with the economic turmoil seen this week, Trump said no, and blamed his predecessor, former president Joe Biden.
Wafa Hakim Orman, associate dean of The University of Alabama in Huntsville’s college of business, says all this “back and forth” is what’s creating a lot of “volatility” in the markets.
“It’s creating uncertainty for businesses who aren’t quite sure how they should make their investment plans going forward,” Orman said.
This story is developing. Refresh for more updates.
NewsNation’s Sierra Campbell and The Associated Press contributed to this report.