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The conflict began when Ontario Premier Doug Ford announced a 25% tariff on the electricity exported to the U.S., a move seen as retaliatory against trade tensions. In response, Trump activated a national emergency regarding electricity and raised tariffs on Canadian steel and aluminum to 50%. His bold actions included suggesting Canada should become the “51st state,” aiming for a more centralized resolution to trade disputes.
Ford, identifying the potential risks to Ontario’s economy, quickly agreed to suspend the electricity tariffs, paving the way for immediate talks with U.S. trade officials led by Secretary of Commerce Howard Lutnick. The town hall meeting was framed as urgent, emphasizing a need for dialogue to avoid escalating trade frictions further.