Ontario imposes 25% hike on US electricity exports amid Trump trade war

Ontario raises electricity prices for US Consumers

Ontario Premier Doug Ford has announced a 25% increase in electricity tariffs for 1.5 million American homes and businesses, effective Monday, in response to US President Donald Trump’s trade war. The new surcharge applies to electricity exports to Minnesota, New York, and Michigan as a retaliatory measure against US tariffs on Canadian goods.

At a press conference in Toronto, Ford warned that Ontario could escalate further if necessary.

“I will not hesitate to increase this charge. If the United States escalates, I will not hesitate to shut the electricity off completely,” Ford stated.

He expressed regret over the impact on American citizens but blamed Trump for the ongoing trade dispute.

“Believe me when I say I do not want to do this. 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.”

Quebec is reportedly considering similar measures against the US.

Minnesota’s response: Minimal impact but major concerns

Minnesota Governor Tim Walz, a Democrat, criticized Trump’s trade war, arguing that it is hurting American consumers rather than affecting the former president.

“The first victims of Trump’s trade war? Minnesotans struggling to pay their skyrocketing electric bill,” Walz posted on X.

Despite the tariff increase, Minnesota’s electricity providers say the impact will be minimal. Minnesota Power, the state’s primary utility, sources only a small fraction of its electricity from Ontario—about $300,000 worth last year, covering just four months.

However, Walz voiced greater concern over the potential inclusion of potash fertilizer in trade disputes, which could severely impact agriculture in Minnesota.

New York and Michigan express grid reliability concerns

New York Governor Kathy Hochul has ordered a review of the tariff’s potential impact on energy costs in the state. She criticized the US administration’s trade policies, calling them “poorly conceived” and “destabilizing.”

Meanwhile, Michigan officials are more concerned about the stability of the electric grid rather than price increases. Matt Helms, spokesperson for the Michigan Public Service Commission, warned that any disruptions in power flow could increase the risk of large-scale outages.

“Any action to limit or disrupt these flows would remove a layer of protection and make all of us—Canadians and Americans alike—more vulnerable to grid-scale outages,” Helms explained.

Escalating trade war between the US and Canada

Ontario’s electricity surcharge is the latest addition to Canada’s retaliatory measures against Trump’s tariffs. The Canadian federal government has already imposed CA$30 billion (USD 21 billion) in counter-tariffs on a range of US products, including:

• Orange juice
• Peanut butter
• Coffee
• Appliances
• Footwear
• Cosmetics
• Motorcycles
• Pulp and paper products

Trump escalated the trade war last week by imposing tariffs on Mexico, Canada, and China, which led to immediate retaliatory actions and sent financial markets into turmoil.

Ford made it clear that Ontario will not back down until Trump removes the tariffs.

“It needs to end. Until these tariffs are off the table, until the threat of tariffs is gone for good, Ontario will not relent,” Ford asserted.

The situation remains tense as both nations continue to raise economic stakes, impacting businesses and consumers on both sides of the border.

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