Ontario Imposes 25% Charge On Electricity To U.S. Starting Today—Hitting New York, Michigan—After Trump Tariffs

Ontario Premier Doug Ford says a 25% surcharge on electricity from Ontario going to the U.S. will go into effect starting Monday—the latest and potentially most harmful retaliatory measure from Canada’s largest province in response to President Donald Trump’s tariffs on Canada, even as Trump pauses some of the levies.

High-voltage power lines cross the St. Clair River between Canada and the U.S. on March 8 in East … [+] China Township, Michigan.

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Key Facts

The surcharge will primarily impact Minnesota, Michigan and New York, which are the three biggest states that import electricity generated in Ontario into the U.S.

“Until these tariffs are off the table, until the threat of tariffs is gone for good, Ontario will not relent,” Ford said at a press conference Monday, adding: “We will not back down—pausing some tariffs, making last minute exemptions won’t cut it, we need to end the tariffs once and for all.”

Ford said, “for weeks now we’ve been faced with so much uncertainty from President Trump,” and vowed he won’t hesitate to increase the tariffs or stop supplying electricity to the U.S. completely.

Ford had teased the possibility last Tuesday, saying in a post on X he put the governors of Minnesota, Michigan and New York “on notice that Ontario is prepared to add a 25 per cent surcharge to the electricity we export to their states if President Trump’s tariffs remain in place.”

In addition to the surcharge on electricity, Ontario has pulled U.S. liquor from its shelves, abandoned a $100-million contract with Elon Musk’s Starlink and worked to stop procuring goods from U.S. companies, CBC reported.

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Crucial Quote

“Believe me when I say I do not want to do this,” Ford said Monday. “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.”

How Much Energy Does Ontario Supply The U.s.?

Ford said Ontario provides electricity to about 1.5 million homes and businesses in New York, Michigan and Minnesota, and he expects this to cost those homes and businesses $400,000 Canadian dollars (or $277,000 in U.S. dollars) daily and add an average of $100 Canadian dollars (or $69 in U.S.) a month to the bills of everyday Americans.

How Will Ontario’s Surcharge Impact New York?

The New York Independent System Operator connects with Ontario’s system operator to “allow for up to 2500 megawatts of imports from Ontario to New York,” according to a statement from the NYISO on Feb. 28. New York also receives electricity from Hydro-Québec, which allows New York to get an additional 2100 megawatts, and Québec has not announced a surcharge similar to Ontario’s—though the premier of the province did say on Feb. 28 he was “not ruling out” retaliatory measures “on electricity exported to the United States.”

How Will Ontario’s Surcharge Impact Michigan?

Michigan gets electricity from Ontario, but doesn’t use most of it, chair of the Michigan Public Service Commission Dan Scripps told the Detroit Free Press. The power comes from Canada to Michigan and flows through the state, and into others, before returning to Canada, meaning it’s hard to quantify exactly what the impact of the surcharge will be on Michiganders, though there could be some price increases, Scripps said.

How Will Ontario’s Surcharge Impact Minnesota?

Minnesota is unlikely to see serious consequences from the surcharge, the Star-Tribune reported last week after Ford first threatened the 25% increase. Minnesota gets some electricity from Ontario, but one of its larger suppliers is Manitoba Hydro. Manitoba hasn’t announced a surcharge on electricity like Ontario, but its premier said last week it would begin scrutinizing hydroelectricity contracts with the U.S., CBC reported.

Key Background

Trump initially said he intended to put 25% tariffs on goods from Canada and Mexico in February in response to the countries’ lack of responses to the fentanyl crisis, but he paused them after both countries agreed to implement stronger border protections. Trump said the countries did not do enough to respond to the flow of immigrants and fentanyl coming into the U.S., so he implemented the tariffs on March 4. Two days later, though, Trump said he would delay the sweeping tariffs for products traded under the United States-Mexico-Canada Agreement until April 2, when his reciprocal tariffs are planned to go into effect—exempting many of the goods imported into the U.S. by both countries. Trump has continued to threaten more tariffs since partially pausing the 25% levies, though, saying on March 7 he may impose reciprocal tariffs on some Canadian goods immediately, accusing the country of “taking advantage of our farmers” by implementing its own tariffs on certain goods from the U.S.

Chief Critics

New York Gov. Kathy Hochul said in a press release shared with Forbes on Monday the federal tariffs have “been poorly conceived from the start” and she called on Trump to rescind them. “We will not allow President Trump and Congressional Republicans to play politics with our energy security while hardworking New Yorkers foot the bill,” Hochul said. Minnesota Gov. Tim Walz said in a post on X the move makes “Minnesotans struggling to pay their skyrocketing electric bill” the “first victims of Trump’s trade war.”

What To Watch For

Trump’s response to Ontario’s surcharge. Michigan Gov. Gretchen Whitmer had also not publicly responded to Ontario’s announcement as of just before 3 p.m. EDT, and Forbes has reached out to her office for comment.

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