Canada’s Ontario Province slaps 25% tax increase on electricity exports to U.S.

Ontario’s premier, the leader of Canada’s most populous Province that provides electricity to Minnesota, New York and Michigan, has announced that it is charging 25% more for electricity to 1.5 million Americans in response to U.S. President Donald Trump’s trade war

Ontario’s premier, the leader of Canada’s most populous Province, announced that effective on Monday (March 10, 2025) it is charging 25% more for electricity to 1.5 million Americans in response to U.S. President Donald Trump’s trade war.

Ontario provides electricity to Minnesota, New York and Michigan.

“I will not hesitate to increase this charge. If the United State 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.”

Mr. Ford said Ontario’s tariff would remain in place despite the one-month reprieve from Mr. Trump, noting a one-month pause means nothing but more uncertainty. Quebec is also considering taking similar measures with electricity exports to the U.S.

Mr. Ford’s office said the new market rules require any generator selling electricity to the U.S. to add a 25% surcharge. Ontario’s government expects it to generate revenue of CA$300,000 ($208,000) to CA$400,000 ($277,000) per day, “which will be used to support Ontario workers, families and businesses”.

The new surcharge is in addition to the federal government’s initial CA$30 billion ($21 billion) worth of retaliatory tariffs have been applied on items like American orange juice, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles and certain pulp and paper products.

Mr. Trump launched a new trade war last week by imposing tariffs against Washington’s three biggest trading partners, drawing immediate retaliation from Mexico, Canada and China and sending financial markets into a tailspin.