Ontario slaps 25% levy on U.S.-bound electricity in latest trade war volley

Lucas Powers · CBC News

· Posted: Mar 10, 2025 9:23 AM EDT | Last Updated: 7 hours ago

Ontario is imposing a 25 per cent surcharge connected each U.S.-bound electricity as portion of its retaliatory measures against U.S. President Donald Trump's tariffs connected Canadian goods.

The caller levy took effect Monday and volition adhd about $10 per megawatt-hour to the outgo of powerfulness heading south, the state says. It volition make an estimated $300,000 to $400,000 per day, wealth that volition beryllium utilized to enactment workers and businesses deed by U.S. tariffs.

"Believe maine erstwhile I accidental I bash not privation to bash this," Ontario Premier Doug Ford said astatine a quality league Monday.

"I consciousness unspeakable for the American people, due to the fact that it's not the American radical who started this commercialized war. It's 1 idiosyncratic who's responsible, that's President Trump," helium said.

Ontario provides energy to astir 1.5 cardinal customers successful the bluish borderline states of New York, Michigan and Minnesota. Ford said the surcharge volition outgo the mean household oregon concern successful these states an further $100 per period connected their powerfulness bills.

He added the magnitude of the levy could beryllium accrued if the Trump medication continues to escalate its commercialized warfare against Canada.

"Until these tariffs are disconnected the table, until these tariffs are gone for good, Ontario volition not relent. We volition not backmost down," Ford said alongside Ontario Energy Minister Stephen Lecce.

The state has besides taken American booze disconnected LCBO shelves and banned U.S. companies from authorities procurement contracts, successful summation to the national government's archetypal circular of retaliatory tariffs connected $30 cardinal worthy of U.S. goods.

The energy surcharge is being imposed by a directive from Lecce to the province's energy strategy operator, which volition necessitate immoderate generator selling energy to the U.S. to adhd what's being called a Tariff Response Charge.

The strategy relation volition past cod the wealth generated by the surcharge connected behalf of the authorities connected a monthly basis.

Last week, Trump temporarily paused implementation of 25 per cent tariffs connected Canadians exports "compliant" with the presumption of the Canada-U.S.-Mexico Agreement (CUSMA) until April 2. But some Ford and Ottawa person said retaliatory measures volition determination up until the tariffs are lifted.

"Pausing immoderate tariffs, making last-minute exemptions — it volition not chopped it. We request to extremity the chaos erstwhile and for all," Ford said Monday.

He besides reiterated his erstwhile threat to stop flows of energy from Ontario to the U.S. altogether if the commercialized warfare lingers on.

Asked astir a circumstantial threshold that whitethorn compel him to instrumentality that step, Ford declined to beryllium specific.

"If necessary, if the United States escalates, I volition not hesitate to chopped the energy disconnected completely," Ford said. "Let's conscionable spot however this rolls out. [Trump] changes his caput astir each azygous day."

WATCH | Ford connected his threshold for cutting disconnected power: 

Ford urged different provinces — successful peculiar Alberta, which sends much than 4 cardinal barrels of lipid per time southbound of the borderline — to look astatine akin moves.

"A connection to Premier (Danielle) Smith: 1 day, I deliberation you mightiness person to usage that trump paper and springiness support for an export tax," helium said.

"You privation to speech astir a trump card? That volition instantly alteration the game, instantly, erstwhile the Americans — and I cognize the Americans — each of a abrupt their state prices spell up 90 (cents) to $1 a gallon, they volition suffer their minds. So we request to astatine slightest enactment that successful the window."

Smith has said Alberta needs to instrumentality action, but she won't curtail oregon enforce counter-tariffs connected lipid and state shipments. Saskatchewan Premier Scott Moe, who leads a state that exports captious uranium and potash to the U.S., has likewise expressed a reluctance to enforce export tariffs.

Ontario won't request to bargain U.S. energy this summer: Lecce

During the quality conference, Lecce noted that astir of the year, Ontario sells galore times much energy from the U.S. than it purchases.

Depending connected vigor demands successful New York, Michigan and Minnesota, those states volition sometimes past re-sell surplus energy that originated successful Ontario to different states, peculiarly on the I-95 corridor down the eastbound seaboard.

When Ontario does bargain U.S.-generated electricity, it is astir often successful the highest summertime months.

Asked if Ontario could look reciprocal surcharges travel the warmer season, Lecce said the province's energy strategy relation is "fully assured successful its quality to support the lights on" with powerfulness generated successful Ontario and Quebec.