Transmission towers in East China Township, Michigan, one of the states that receives energy exports from Ontario. Premier Doug Ford says the province is putting a 25-per-cent tariff on electricity in response to U.S. tariffs.Bill Pugliano/Getty Images
Ontario Premier Doug Ford made good on his threats to impose a 25-per-cent surcharge on his province’s electricity exports to the United States in retaliation for President Donald Trump’s tariffs – prompting vocal reactions south of the border from the governors of New York State and Minnesota.
Democratic Minnesota Governor Tim Walz, his party’s unsuccessful vice-presidential candidate in last fall’s election, suggested Mr. Ford’s move would hit power bills in his state. “The first victims of Trump’s trade war? Minnesotans struggling to pay their skyrocketing electric bill,” he said in post on X.
New York Governor Kathy Hochul and Democratic Senator Charles Schumer issued a joint open letter to senior state officials that demands Mr. Trump and Mr. Ford both rescind their “harmful policies” and that orders state agencies “to ensure transparency on the real cost to consumers,” in the form of a “one-line ‘Trump Tariff’ cost indicator” on utility bills.
The letter also says it remains unclear whether electricity imports were already supposed to be subjected to Mr. Trump’s 10-per-cent tariff on energy, on top of Mr. Ford’s new surcharge. And it asks state agencies to review contingency plans for future restrictions on Canada’s energy exports.
Ontario Premier Doug Ford speaks to members of the media at the Queen's Park Legislature in Toronto on Monday March 10, 2025.Chris Young/The Canadian Press
“It is unfortunate that we must now consider reliability contingencies should the century-long energy partnership between New York and Canada be destroyed due to President Trump’s harmful, short-sighted actions,” the letter reads.
Mr. Ford, who also repeated his threat to go further and cut off power exports completely, announced on Monday that his government is issuing a new regulation to require a “tariff response charge” on the province’s power exports to the U.S., which go to New York State, Michigan and Minnesota.
Matt Helms, a spokesman for the Michigan Public Service Commission, said the regulator is unaware of any utility buying power directly from Ontario. He said electricity passes through Michigan before being transported elsewhere and that “the ultimate impact on Michigan customers is likely to be small.” However, he said the uncertainty could create more danger of “grid-scale outages” on both sides of the border.
Provinces’ measures to limit electricity exports to U.S. could strain cross-border ties, experts say
Ontario’s charge, the government says, amounts to about $10 per megawatt hour of electricity, and will result in up to $400,000 in revenue a day. The province also says the charge could be increased if the tariff war escalates.
The province exports about $700-million worth of electricity a year to the U.S., or 12,000 megawatt hours – enough power to supply 1.5 million homes.
Mr. Ford and his Energy Minister, Stephen Lecce, both insisted the province’s move would not backfire if Ontario’s access to U.S.-produced energy is curtailed in retaliation. They say a power deal with Quebec and backup gas-fired plants mean Ontario can do without U.S. power, even on peak use summer days.
Asked how a mere $400,000 a day in electricity costs could matter in a multibillion-dollar trade war, Mr. Ford likened the charge to his move to strip U.S. booze from Ontario’s liquor stores as a way to get the attention of everyday Americans. He said U.S. consumers would see “up to $100″ added to their monthly power bills, but Ontario officials did not respond to requests to explain how this figure was calculated.
Mr. Lecce said because the power grid is interconnected, Ontario’s surcharge will also affect consumers in other U.S. states.
The Ontario government said Monday it had issued an enabling regulation under the Electricity Act that allows for an “urgent amendment” to the market rules administered by its Independent Electricity System Operator (IESO). Mr. Lecce has also issued a directive to the IESO to require electricity generators in the province to add what it calls a “tariff response charge” to the bills for the power Ontario sends to the U.S.
Last week, Mr. Lecce had said the surcharge would require legislation, but Mr. Ford said he had asked officials to come up with a way to do it more quickly. Ontario’s MPPs are not due back in the legislature until April, after last month’s snap election called by Mr. Ford.
Mr. Ford urged other premiers from electricity-producing provinces to follow his lead. And he repeated his argument that oil from Alberta and potash and uranium from Saskatchewan should also be used as leverage, despite reluctance from those provinces’ premiers.
Last week, Manitoba’s government issued a directive to Manitoba Hydro that requires cabinet approval before the Crown utility signs or extends power deals with U.S. customers.
Quebec, one of the world’s biggest hydroelectricity producers, is also weighing whether to halt power exports to the U.S. But a government spokesman said Monday no action to that effect is imminent.
Asked Monday whether British Columbia needs to re-evaluate its electricity trade with the U.S., Premier David Eby said the province sells its power at high rates and benefits from cheap surplus wind and solar power from California. Going it alone on electricity could be “counterproductive” and cost B.C. ratepayers.
But he credited Mr. Ford for sending a strong message with the power surcharge and said that B.C. will soon table legislation that will allow the province to follow suit if need be.
Mr. Eby also announced that his province will remove all U.S. alcohol from the shelves of BC Liquor Stores, expanding a previous measure that excluded only products from Republican-supporting states.
With reports from Nicholas Van Praet and Andrea Woo