Ontario’s Premier Doug Ford announced that, effective Monday, the province is imposing a 25% surcharge on electricity exports to the United States in response to US President Donald Trump’s trade war. The measure affects 1.5 million American consumers in Minnesota, New York, and Michigan.
“President Trump’s tariffs are a disaster for the U.S. economy. They’re making life more expensive for American families and businesses,” Ford said in a statement. “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.”
Economic impact and revenue expectations
Ford’s office stated that the new market rules require any generator selling electricity to the US to apply a 25% surcharge. The Ontario government estimates that this will generate between 300,000 Canadian dollars (US$208,000) and 400,000 Canadian dollars (US$277,000) per day, with the funds allocated to support Ontario workers, families, and businesses.
Federal retaliatory tariffs also in effect
Ontario’s surcharge adds to Canada’s broader retaliatory measures, which include 30 billion Canadian dollars (US$21 billion) in tariffs on various American goods such as orange juice, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles, and certain pulp and paper products.
Trump’s rrade war and its repercussions
Trump recently escalated trade tensions by imposing tariffs on Washington’s three biggest trading partners, prompting immediate retaliation from Canada, Mexico, and China. The move sent financial markets into turmoil, raising fears of a broader economic conflict.
Although Trump later announced a one-month delay on implementing certain 25% tariffs on Canadian and Mexican goods, Ford dismissed the pause as insufficient. “A one-month pause means nothing but more uncertainty,” he said, emphasizing Ontario’s firm stance on its new electricity surcharge.
The Trump administration id yet to respond to Ontario’s move, and trade experts warn that the surcharge could further strain diplomatic relations.
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