The Canadian province of Ontario has officially imposed a 25% surcharge on electricity exports to New York, Michigan and Minnesota, escalating trade tensions between Canada and the United States. The move, reported by CNN, is a direct response to President Donald Trump’s tariffs on Canadian goods, though he has temporarily lifted duties on USMCA-compliant products until at least April 2.
The surcharge will affect approximately 1.5 million American homes and businesses, raising costs for consumers and industries in the three states. Ontario Premier Doug Ford expects the measure to generate between $300,000 and $400,000 daily, reinforcing his province’s economy.
Ford has also warned that Ontario could take more drastic action, including cutting off electricity exports entirely if tensions escalate:
“If the United States escalates, I will not hesitate to shut the electricity off completely,” Ford told reporters. “Believe me when I say I do not want to do this, I feel terrible for the American people, because it’s not the American people who started this trade war. It’s one person who’s responsible. That’s President Trump.”
Ford on Monday said the 25% surcharge “will cost families and businesses” in New York, Minnesota and Michigan and add around “$100 per month to the bills of hardworking Americans.”
But it would also hurt Canada’s energy industry, in turn. Canada, which is far more dependent on US exports than America is on Canadian goods, risks plunging into a recession if the trade war escalates. As the saying goes: no one wins in a trade war.
Along with his threat to cut electricity off completely, Ford said he may raise the 25% surcharge if US tariffs escalate. Trump has threatened to do just that: On Friday, he said he would levy dairy and lumber tariffs on Canada, matching dollar-for-dollar the duties Canada places on US goods. And Trump on Sunday said tariffs on Canada and Mexico could rise from the threatened 25% level if the countries don’t make good on their promises to help reduce the amount of fentanyl crossing over the boarder into America.
Last week, Ford expressed his willingness to take harsh measures, stating he would cut off energy supplies to the U.S. “with a smile on [his] face” emphasizing the need for the U.S. to “feel the pain” of their tariff decisions.
Financial markets reacted negatively to the growing tensions. The Dow Jones Industrial Average was down more than 630 points, or 1.49%, by midday Monday as investors grow wary of further economic fallout.
This is a breaking news story. Please check back for updates.
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WOW, that is scary! They are going to tax the power on 1.5 million homes….the size of a medium sized city in Texas. OOOOOOYou have me scared. Why not just comply with the request to shut down the Fentanyl traffic…much easier and now we will have to take care of it by closing the border altogether…,Checkmate!
Isn’t it interesting how much attention is payed to the resultant increase in prices due to tariff increases but not on the increase cost in fuel required to deliver our products and to get workers to and from work. At least some of the increase is being paid by foreign interests and hopefully that will eventually find its way to the American consumer.
Ford who? Ford has also warned that Ontario could take more drastic action, including cutting off electricity exports entirely if tensions escalate:
Not well thought of in Canada:
https://x.com/fordnation/status/1899084359816073549?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Etweet
Lets start talking about the Tariffs Canada on American goods …….
Canada is facing bankruptcy in 2025. Canada has no money. This Tariff on electricity is not in response to any actual US Tarrif. It is Canada desperately needing money but trying to blame the US for canada’s self crated problem