The Canadian province of Ontario has taken a bold step by imposing a 25% surcharge on electricity exports to the United States, targeting states like New York, Michigan, and Minnesota. The move, announced by Ontario Premier Doug Ford on Monday, March 10, 2025, comes as a direct response to U.S. President Donald Trump’s tariffs on Canadian goods. Ford framed the surcharge as a defensive measure to protect Ontario’s economic interests amid escalating trade tensions.
In a strongly worded statement, Ford declared, "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." The surcharge, valued at $10 per megawatt-hour, will apply to all electricity generators selling power to the U.S., as directed by the province’s Independent Electricity System Operator (IESO).
The decision underscores Ontario’s willingness to leverage its energy resources as a bargaining chip in the ongoing trade dispute. While the surcharge is expected to increase costs for U.S. buyers, it also signals a broader pushback against American trade policies perceived as unfair by Canadian officials. Ford’s administration has made it clear that the province intends to stand firm until the tariff threats are lifted, setting the stage for potential further economic sparring between the two nations.
