Ontario Premier Doug Ford has announced a 25% increase in electricity tariffs for 1.5 million American consumers in Minnesota, New York, and Michigan in response to U.S. President Donald Trump’s escalating tariff measures against Canada.
“I will not hesitate to increase this charge. If the United States escalates, I will not hesitate to shut the electricity off completely,” 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.”
Ford stated that Ontario’s electricity surcharge would remain in place despite Trump’s one-month reprieve on tariffs for Canada, dismissing the pause as a source of further uncertainty rather than a resolution. The province has already taken steps in the trade standoff by banning U.S. alcohol imports and canceling a government contract with Elon Musk’s Starlink.
The U.S. and Canada maintain a highly integrated electrical grid, with Canada being the sole international supplier of electricity to the U.S. In 2023, net electricity exports from Canada to the U.S. totaled 27.6 terawatt hours, primarily from Manitoba, Ontario, British Columbia, and Quebec, according to the Canadian Energy Regulator, as cited by The Hill.
Ford’s office confirmed that under new market regulations, any electricity sold to the U.S. must include a 25% surcharge. The Ontario government expects the policy to generate between CA$300,000 ($208,000) and CA$400,000 ($277,000) daily, with the revenue directed toward supporting Ontario workers, families, and businesses.
The move comes as stock markets reacted negatively to the ongoing trade tensions, with the Dow Jones Industrial Average dropping over 550 points, or 1.3%, by midday Monday. Trump has imposed tariffs on Canada, Mexico, and China as part of his broader trade strategy, though he recently announced a temporary pause as the situation escalated.
Ford criticized Trump’s shifting trade policies, accusing him of creating instability. “Republicans, at least the ones I speak to, do not agree with President Trump, but they are too scared to go out there and say it publicly,” Ford said. “It’s a shame, but we need to end this.”
POLICY & LAW | Canadian Premier Imposes 25% Tariff on Electricity Exports to the U.S.
