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Ontario slaps 25% tax increase on electricity exports to US in response to Trump’s trade war
In response to President Donald Trump's ongoing tariff war, Ontario Premier
Doug Ford
Monday announced 25 per cent more electricity tariff to 1.5 million Americans as Ontario provides electricity to Minnesota, New York and Michigan. “I will not hesitate to increase this charge. If the United States escalates, I will not hesitate to shut the electricity off completely,” Ontario Premier Doug Ford said at a news conference in Toronto.
“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.”
The electricity tariff will remain in place notwithstanding Donald Trump's one-month reprieve for tariffs on Canada, Doug said adding that the one-month pause means nothing but more uncertainty.
Ontario has been leading the tariff war by already banning US alcohol, cancelling a government contract with Elon Musk's Starlink.
Amid the ongoing tariff war, stock markets dropped again Monday as the Dow Jones average was down more than 550 points, or 1.3 per cent, just after noon on Monday.
The US is Canada’s only trading partner for electricity, and the Canadian and U.S. electrical grids are highly integrated. In 2023, net electricity exports from Canada to the U.S. were 27.6 terawatt hours and came mostly from the provinces of Manitoba, Ontario, British Columbia and Quebec, The Hill reported, citing the Canadian Energy Regulator data.
