Ontario has imposed a 25% surcharge on electricity exports to the United States, with Premier Doug Ford stating the move is a direct response to US President Donald Trump’s trade war. The new tax, effective Monday, applies to electricity sold to Minnesota, New York, and Michigan, affecting approximately 1.5 million American homes and businesses.
“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 press 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 dismissed the significance of Trump’s one-month delay on imposing new tariffs, arguing that the pause only creates further uncertainty. Quebec is also considering similar measures on electricity exports.
Impact and revenue projections
The new tax requires all electricity generators selling power to the US to add the 25% surcharge, a measure Ontario expects will generate between CA$300,000 ($208,000) and CA$400,000 ($277,000) per day. According to Ford’s office, the funds will be used to support Ontario workers, families, and businesses.
Minnesota, one of the states affected, downplayed the impact. Minnesota Power, the primary utility serving the state’s border regions, stated it purchases only a small amount of electricity from Ontario, amounting to about $300,000 worth last year. The Midcontinent Independent System Operator, which manages the regional power grid spanning from Manitoba to Louisiana, also projected minimal effects.
Minnesota Governor Tim Walz, a Democrat, criticized Trump’s trade policies, calling them harmful to residents struggling with high electricity bills. “Minnesotans cannot afford Trump’s billionaire-run economy. We have to put a stop to this madness,” he posted on social media.
Trade war intensifies
Trump launched a new trade offensive last week, imposing tariffs on Canada, Mexico, and China, triggering immediate retaliatory measures. The move rattled financial markets, with businesses warning of potential supply chain disruptions.
In response, Canada applied CA$30bn ($21bn) in counter-tariffs on US goods, targeting products such as orange juice, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles, and certain paper products.
Ford estimated that Ontario’s surcharge would add about CA$100 ($69) per month to the electricity bills of affected American consumers. “It needs to end. Until these tariffs are off the table, until the threat of tariffs is gone for good, Ontario will not relent,” he said.
Trump has also pushed for US automakers to relocate production from Canada and Mexico to the US, temporarily exempting vehicles and auto parts from his planned 25% tariff hike under the USMCA trade agreement. Ontario, home to much of Canada’s auto manufacturing industry, stands to be significantly impacted by any prolonged disruption in auto trade.
Call for Canadian oil export tax
Ford also called for Alberta to impose an export tax on oil shipments to the US, arguing it would be a powerful leverage tool. Alberta supplies 4.3 million barrels of oil daily to the US, which accounts for 60% of America’s crude oil imports.
“You want to talk about a Trump card. That will instantly change the game,” Ford said. “I know the Americans. If all of a sudden their gas prices go up a dollar a gallon, they will lose their minds.”
The US remains heavily dependent on Canadian resources. In addition to oil, Canada supplies 85% of America’s imported electricity, as well as key raw materials such as steel, aluminum, and uranium. Ford warned that if trade tensions escalate further, Ontario would take additional steps to “maximize the pain against Americans” in retaliation.
The ongoing trade dispute has sparked backlash across Canada, with Trump’s comments about making Canada the 51st US state further fuelling public anger. American national anthems have been booed at NHL and NBA games, and some Canadians have begun boycotting US goods and travel south of the border.
While Ford’s government remains firm on the new electricity surcharge, it remains to be seen whether other provinces will follow suit with additional economic measures against the US.
