Ontario Premier Announces Retaliatory Tax on Electricity Exports to US Amid Trade Tensions
Ontario Premier Doug Ford announced a 25% tax on exports of electricity to New York, Minnesota, and Michigan in retaliation for tariffs imposed by the United States on Canada. Despite the U.S. later exempting many Canadian products from these levies, Ford refused to retract the surcharge. He also warned of potentially increasing the surcharge or even halting electricity exports entirely if the United States escalates its tariffs.
Ford stated that Ontario's tariff would remain in place despite the one-month reprieve from Trump, emphasizing that such a pause only creates more uncertainty. Quebec is also considering similar measures regarding electricity exports to the U.S. The new market rules in Ontario mandate that any generator selling electricity to the U.S. must add a 25% surcharge.
Ontario's government anticipates that the surcharge will generate revenue between CA$300,000 and CA$400,000 per day, which will be allocated to support Ontario workers, families, and businesses. This surcharge is in addition to the federal government’s initial CA$30 billion worth of retaliatory tariffs applied on items like American orange juice, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles, and certain pulp and paper products.
Ontario's new electricity export tax aims to offset losses from U.S. tariffs, adding hundreds of thousands in daily revenue. These retaliatory measures signal an escalating trade dispute that could trigger broader economic consequences.
“I will not hesitate to increase this charge. If the United State escalates, I will not hesitate to shut the electricity off completely.”
