Ontario Imposes 25% Surcharge on U.S. Electricity Exports

Ontario has implemented a 25% surcharge on electricity exports to the United States, targeting approximately 1.5 million Americans in Minnesota, New York, and Michigan. This decision, announced by Ontario Premier Doug Ford, is a direct response to the trade war initiated by U.S. President Donald Trump, who has imposed tariffs on Canadian goods. The surcharge, effective from Monday, is expected to add about CA$100 ($69) per month to the electricity bills of affected Americans.

Ford emphasized that the surcharge is a retaliatory measure aimed at generating revenue to support Ontario workers, families, and businesses. The new tariff is projected to bring in CA$300,000 to CA$400,000 per day. The premier made it clear that the surcharge will remain in place until the U.S. removes its tariffs on Canadian goods. Ford's government has also introduced new market rules requiring any generator selling electricity to the U.S. to add a 25% surcharge.

This move by Ontario comes in addition to the federal government's retaliatory tariffs on various American goods, including orange juice, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles, and certain pulp and paper products. The total value of these tariffs is estimated to be CA$30 billion. Trump's trade war has drawn immediate retaliation from Canada, Mexico, and China, leading to widespread fears of a broader trade conflict.

Despite a one-month reprieve from Trump on certain tariffs, Ford has stated that this pause means nothing but more uncertainty. He has criticized Trump's changing stance on trade, noting that the U.S. president's actions have infuriated Canadians and led to a backlash against American goods and services. Ford has warned that if Trump continues to threaten Canada with steel, aluminum, and dairy tariffs, he will do everything in his power to maximize the pain for Americans.

Ford has also noted that the U.S. relies on Canada's power and that cutting off electricity exports could impact other states as well. The premier has made it clear that he is prepared to cut off power exports entirely if necessary, as long as Trump's tariff threats remain. This escalation in the trade war highlights the growing tensions between the two countries and the potential for further economic repercussions.