This could be an opening for a resolution on tariffs, or at least part of them.

Statement from Ontario Premier Doug Ford:

Please see a joint statement from United States Secretary of Commerce Howard Lutnick and myself:

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.

I have long argued that the entire aim of US tariffs on Canada was renegotiating USMCA sooner. It looks like that might be the case, though it’s hard to move it up much given that Canada is headed for a federal election.

It’s a bit bizarre that this whole thing is unfolding with Ontario’s Premier rather than the Canadian Prime Minister. Ford emphasized this was a temporary pause and that ‘by no means are we going to roll over’.

The US reached out to Ford, he said. That’s an important detail and indicates the White House wants to cool things down.

In any case, this statement has cooled tensions and boosted US equities into positive territory. USD/CAD has quickly dropped as well.

Update: Ford said Canadian Finance Minister Dominic LeBlanc will also be in the meeting.

This article was written by Adam Button at www.forexlive.com.