Ontario Premier Doug Ford announced that a 25% surcharge on electricity exported from Ontario to the U.S. will take effect starting Monday. This move marks the latest of several potential retaliatory measures from Canada’s largest province in response to President Donald Trump’s tariffs, despite Trump having paused some levies recently.
– The surcharge will significantly impact Minnesota, Michigan, and New York, the largest states importing electricity generated in Ontario.
– “Until these tariffs are off the table, until the threat of tariffs is gone for good, Ontario will not relent,” Ford stated at a Monday press conference. He emphasized the need for a permanent end to the tariffs: “We will not back down—pausing some tariffs, making last-minute exemptions won’t cut it.”
– Ford expressed frustration over the uncertainty posed by Trump and threatened to increase tariffs or halt electricity exports to the U.S. entirely if necessary.
– Ford indicated that he had previously warned governors of the affected states about the imposition of the surcharge if the tariffs remained in effect. In addition to the electricity surcharge, Ontario has also removed U.S. liquor from store shelves and canceled a $100 million contract with Elon Musk’s Starlink, among other actions, as reported by CBC.
Crucial Quote
“Believe me when I say I do not want to do this,” Ford remarked. “I feel terrible for the American people who didn’t start this trade war. It’s one person who is responsible, it’s President Trump.”
How Much Energy Does Ontario Supply the U.S.?
Ford noted that Ontario supplies power to around 1.5 million homes and businesses in New York, Michigan, and Minnesota. He estimated that the surcharge would cost these households and businesses approximately CAD 400,000 (USD 277,000) daily, increasing monthly bills by about CAD 100 (USD 69).
How Will Ontario’s Surcharge Impact New York?
The New York Independent System Operator has the capacity to import up to 2,500 megawatts from Ontario. New York also receives additional electricity from Hydro-Québec, which has not announced a similar surcharge. However, the premier of Québec has stated that retaliatory measures regarding electricity exports to the U.S. are not off the table.
How Will Ontario’s Surcharge Impact Michigan?
According to the chair of the Michigan Public Service Commission, most of Ontario’s electricity that flows through Michigan is not consumed by its residents. As a result, quantifying the direct impact of the surcharge may prove challenging, although some price hikes could be expected.
How Will Ontario’s Surcharge Impact Minnesota?
Minnesota should not face severe repercussions from the surcharge, as it obtains a significant portion of its electricity from Manitoba Hydro, which has not yet implemented a surcharge. However, the Manitoba premier has indicated that scrutinizing hydroelectric contracts with the U.S. will begin.
Initially, Trump proposed 25% tariffs on Canadian and Mexican goods in February, citing insufficient responses to the fentanyl crisis. Although he paused the tariffs after reaching agreements for enhanced border protections, he later reinstated them in March. Trump has continued to threaten additional tariffs despite the recent pause on some levies.
Chief Critics
New York Governor Kathy Hochul criticized the federal tariffs as poorly conceived and called for their rescission. “We will not allow President Trump and Congressional Republicans to play politics with our energy security while hardworking New Yorkers foot the bill,” she stated. Similarly, Minnesota Governor Tim Walz lamented that the surcharge would primarily affect residents already dealing with rising electric bills.
