Local experts react to Canada suspending electricity tariffs
BUFFALO, N.Y. (WIVB) — The trade war between the United States and Canada continues as Ontario Premier Doug Ford removed electricity price hikes on Western New Yorkers Tuesday. The move comes following President Donald Trump’s threat of doubling tariffs on Canadian metals.
Buffalo State Economics professor Fred Floss said Tuesday’s battle on the tariff front only furthered the sense of uncertainty around how these hikes will affect the economies of both countries, something he is following closely.
“In both directions, people in the United States are going to pay more for goods and services,” Floss said. “Canadians are not going to see that price increase.”
“Would you be willing to pay 20 percent more for whatever you buy to bring certain jobs back to the U.S.? Do you know anyone who would?” said Tony Ogorek, president of Ogorek Wealth Management.
The cloud of uncertainty in recent days stems from a 25 percent price hike that Ford put on Canadian electricity, which made up only 4.4 percent of New York’s imported power in 2023.
In response, Trump said he would double steel and aluminum tariffs on Canada to 50 percent.
“All he’s asking for at the end of the day are fair and balanced trade practices, and unfortunately, Canada has not been treating us a very fairly at all over the past several decades,” said White House Press Secretary Karoline Leavitt.
“The uncertainty is that it doesn’t seem like we have a policy,” Floss said.
Seeing Trump’s tariff increase, Ford spoke with U.S. Commerce Secretary Howard Lutnick in a joint statement saying they had a “productive conversation about the economic relationship between the countries.” In response, Ontario agreed to suspend its 25 percent surcharge on exports of electricity to the U.S.
“We have both agreed that cooler heads prevail,” Ford said. “We need to sit down and move this forward.”
“It’s not a win because he took them off as part of this tariff game that the United States and Canada are playing,” Floss said. “He could very easily tomorrow put them back on.”
Gov. Kathy Hochul responded said Ford reiterated to her that “he is not interested in hurting New Yorkers” and she is “pleased to see he suspend this proposal.”
Ogorek said the trade battle risks further upsetting stock markets, with both the S&P 500 and DOW tumbling Tuesday.
“We don’t know from day-to-day to week-to-week what the policy is going to be,” Ogorek said “That creates a lack of confidence in the economy. It tends to paralyze spending, which then is going to be costing people’s jobs.”
Ogorek added that the best thing for people to do right now is to “know what you own.”
“If you haven’t looked at your 401(k) statement in a while, I think now is an ideal time to pull it out and see, you know, what you are invested in and what allocation you have to stocks and to bonds,” Ogorek said.
Canadian officials are planning retaliatory tariffs to specific steel and aluminum tariffs. Those are expected to be announced Wednesday.
The White House says the 25 percent tariff on Canadian metals will still take effect come midnight.
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Dillon Morello is a reporter from Pittsburgh who has been part of the News 4 team since September of 2023. See more of his work here and follow him on Twitter.
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