Ontario Premier Doug Ford said at a news conference that he will impose a 25 per cent surcharge on electricity exports to three US states starting Monday, and warned he would shut off supply completely if the US imposes new tariffs on Canadian goods.
Ontario Premier Ford told reporters:
“If the United States escalates the situation, I will not hesitate to shut off the power supply completely. Believe me, I don’t want to do that at all. I sympathise with the American people because they are not the ones who started this trade war. One person is to blame, and that is President Trump.”
Ford said the 25 per cent surcharge would result in higher costs for residents and businesses in New York, Minnesota and Michigan, adding about $100 a month to the bills of ordinary Americans.
However, the move would also hurt Canada’s energy sector. The country is heavily dependent on exports to the US and could face a recession if the trade war escalates.
Analysts say Ontario’s decision is rather symbolic, as prices on spot electricity markets in the US and on exchanges where provinces sell their power are based on supply and demand. End buyers can choose from a list of sellers, and don’t necessarily agree to Ontario’s raised price. However, local governments plan to make up to $400,000 Canadian dollars per day this way – the money is used to support Ontario workers, families and businesses.
According to Bloomberg, New York imported about 4.4 per cent of all electricity consumed from Canada in 2023. Other states buy even less electricity from their neighbour.
Trump has already imposed duties on US imports from Mexico, Canada and China – they amounted to 25, 25 and 20 per cent respectively. The head of the White House also threatened to impose 25 per cent duties on all goods from the EU, including food and cars. In response, now former Canadian Prime Minister Justin Trudeau promised that the country would impose 25 per cent tariffs on American goods worth 155 billion dollars and would not cancel them until the termination of the current measures of the United States.
