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Ontario imposes 25% increase on electricity exports to US in response to Donald Trump’s trade war
Ontario Premier Doug Ford imposed a 25% surcharge on electricity exports to the US, impacting 1.5 million consumers in Minnesota, New York, and Michigan. The move, part of Canada’s broader tariff retaliation, is expected to generate up to C$400,000 daily to support Ontario workers.
Ontario’s Premier Doug Ford announced that, effective Monday, the province is imposing a 25% surcharge on electricity exports to the United States in response to US President Donald Trump’s trade war. The measure affects 1.5 million American consumers in Minnesota, New York, and Michigan.
“President Trump’s tariffs are a disaster for the U.S. economy. They’re making life more expensive for American families and businesses,” Ford said in a statement. “Until the threat of tariffs is gone for good, Ontario won’t back down. We’ll stand strong, use every tool in our toolkit and do whatever it takes to protect Ontario.”
Economic impact and revenue expectations
Ford’s office stated that the new market rules require any generator selling electricity to the US to apply a 25% surcharge. The Ontario government estimates that this will generate between 300,000 Canadian dollars (US$208,000) and 400,000 Canadian dollars (US$277,000) per day, with the funds allocated to support Ontario workers, families, and businesses.
Federal retaliatory tariffs also in effect
Ontario’s surcharge adds to Canada’s broader retaliatory measures, which include 30 billion Canadian dollars (US$21 billion) in tariffs on various American goods such as orange juice, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles, and certain pulp and paper products.
Trump’s rrade war and its repercussions
Trump recently escalated trade tensions by imposing tariffs on Washington’s three biggest trading partners, prompting immediate retaliation from Canada, Mexico, and China. The move sent financial markets into turmoil, raising fears of a broader economic conflict.
Although Trump later announced a one-month delay on implementing certain 25% tariffs on Canadian and Mexican goods, Ford dismissed the pause as insufficient. “A one-month pause means nothing but more uncertainty,” he said, emphasizing Ontario’s firm stance on its new electricity surcharge.
Canadian incoming PM stands firm against US tariffs
Canada is standing its ground in the ongoing trade war with the United States, with former Bank of Canada Governor & incoming Prime Minister Mark Carney vowing that the country will not back down.
“We didn’t ask for this fight. But Canadians are always ready when someone else drops the gloves,” Carney said. “The Americans, they should make no mistake, in trade, as in hockey, Canada will win.”
Carney emphasised that Canada will keep its initial retaliatory tariffs in place until “the Americans show us respect.”
Backlash against US policies
Trump’s trade war and his comments suggesting Canada could become the “51st state” have sparked widespread anger among Canadians. The backlash has been evident in several ways:
- Fans have been booing the American national anthem at NHL and NBA games.
- Many Canadians are canceling trips to the US.
- Consumers are increasingly avoiding American goods when possible.
Growing strain on US-Canada relations
The trade dispute has further strained relations between the two allies, with economic and political tensions mounting. As Canada continues to push back, all eyes are on Washington to see whether the US will ease its stance or risk further retaliation from its northern neighbor. The Trump administration is yet to respond to Ontario’s move.
(With AP inputs)
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Business NewsNewsWorldOntario imposes 25% increase on electricity exports to US in response to Donald Trump’s trade war
First Published:10 Mar 2025, 09:05 PM IST
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