Ontario Premier of Canada Doug Ford is heading with his plan to impose a 25% tariff on electricity exports to the United States, despite Trump’s decision to suspend most tariffs on Mexico and Canada on Thursday. The proposed tariffs will take effect on Monday.
“We’re going to put a 25% tariff on electricity coming from Ontario to Michigan, New York, and Minnesota,” Ford said to Fox Business Network.
Authorities in the impacted states warn that this decision could increase expenses and jeopardize grid reliability for the 1.5 million consumers in Minnesota, Michigan, and New York who rely on electricity supplied by the province.
While Canada’s hydropower exports to the U.S. account for only a small fraction of the nation’s electricity generation, experts emphasize that the interconnected grid between the two countries is essential for ensuring system stability.
New York State also receives a portion of its electricity from Quebec, which relies on its vast dams and hydropower resources for energy production.
The United States and Canada maintain a highly integrated electric grid, enabling operators to collaborate for efficient and reliable power supply. Border states have expressed worries about the tariffs’ effects on consumer expenses.
The New York Independent System Operator (NYISO) warns that export tariffs on electricity could significantly harm reliability and disrupt wholesale markets.
The Minnesota Commerce Department of the United States expressed strong concerns about the tariffs, describing it as a manmade crisis. The department conveyed confidence in maintaining electricity for Minnesotans but warned that it could come at a much higher cost for energy bills.
The move underscores Canada’s retaliatory measures, signaling the country’s broader effort to address trade imbalances caused by U.S. policies.
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