Bank of Canada likely to cut rates 25 bps to cushion economy from tariffs

The bank governor will err on the side of supporting the economy during what could be a downtrend from the tariffs,

said Tony Stillo, director at forecasting and analysis group Oxford Economics

A strong fourth quarter gives us a little bit of an insurance policy against these impending tariffs,

said Andrew DiCapua, principal economist at the Canadian Chamber of Commerce

There’s a very strong man in Canada who said he was going to charge a surcharge, or a tariff, on electricity coming into our country. He has called and said he’s not going to do that,

Trump said

If a recession does happen it’s a self made recession made by one person. And one person only,

he added as per AP

Canada is a Tariff abuser, and always has been, but the United States is not going to be subsidizing Canada any longer,

he added

Until then, Ontario will keep up the fight... That's why today we're moving forward with a 25 percent surcharge on electricity exports" to Minnesota, Michigan and New York

he said

Minnesota cannot afford Trump's billionaire-run economy. We have to put a stop to this madness,

Walz said

Pausing some tariffs, making last-minute exemptions — it won't cut it. We need to end the chaos once and for all. We need to sit down, work together and land a fair deal,

he told a news conference

Because our Tariffs are reciprocal, we'll just get it all back on April 2."

He seemed to confirm he would do so in the Truth Social post, writing

Jonathan Wilkinsonminister of Energy and Natural Resources

When we are talking about non-tariff retaliation, it could be about restricting supply, it could be putting our own export duties on products. It could be energy and minerals, it could be broader than that,

Wilkinson said in an interview with Reuters

Today, United States Secretary of Commerce [Howard Lutnick] and Premier of Ontario Doug Ford had a productive conversation about the economic relationship between the United States and Canada. Secretary Lutnick agreed to officially meet with Premier Ford in Washington on Thursday, March 13 alongside the United States Trade Representative to discuss a renewed USMCA ahead of the April 2 reciprocal tariff deadline. In response, Ontario agreed to suspend its 25 per cent surcharge on exports of electricity to Michigan, New York and Minnesota."

Joint statement issued by Ford and Lutnick

I will shortly be declaring a National Emergency on Electricity within the threatened area,

Trump said in the post

Michigan ratepayers are unlikely to see significant price increases as a result because most of the state's electricity is produced by in-state utilities or purchased through long-term contracts,

the MPSC said

In a broader trade war with Canada that includes energy, Minnesota would be a huge loser because of our dependencies,

Pete Wyckoff, deputy commissioner for Walz's Department of Commerce, said in comments shared with Newsweek on Monday

Of greater concern is the stability of the electric grid. There are significant flows across the border because of the interconnected grids between the two countries,

the Michigan Public Service Commission (MPSC) stated in a response shared with Newsweek

The NYISO expects to have adequate reserves to meet reliability criteria and forecasted demand for New York,

the agency told Newsweek

Any net interchange purchases are done through MISO. On the generation side, our fuel for plants comes entirely from within the United States,

the company said

When you are negotiating with someone (and) they call you and they hand over an olive branch, the worst thing I think I could do as a premier of Ontario is ignore them,

he was cited as saying by Reuters

Let's sit down and negotiate,

To this, Ford said

I'm looking at that, but probably so,

Trump told reporters on Tuesday when asked if Ontario's move would lead him to back down on his tariff threat as well