Ontario slaps 25% tax increase on electricity exports to US in response to Trump's trade war

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Last edited Mon Mar 10, 2025, 12:31 PM - Edit history (1)

Source: AP

Updated 12:26 PM EDT, March 10, 2025


TORONTO (AP) — Ontario’s premier, the leader of Canada’s most populous province, announced that effective Monday 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.” Ford said Ontario’s tariff would remain in place despite the one-month reprieve from 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.

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 $300,000 Canadian dollars ($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.

Read more: https://apnews.com/article/canada-ontario-us-trump-tariffs-electricity-834dc3d9defd314923912f9bd8540e31

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Game on.

Article updated.

Original article/headline -

Ontario slaps 25% increase on electricity exports to US in response to Trump's trade war

Updated 11:45 AM EDT, March 10, 2025


TORONTO (AP) — Ontario’s premier, the leader of Canada’s most populous province, announced that effective Monday 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.”

Ford said Ontario’s tariff would remain in place despite the one-month reprieve from Trump, noting a one-month pause means nothing but more uncertainty. 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 $300,000 Canadian dollars ($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.