TORONTO — Ontario’s Premier has announced that starting Monday, a 25% increase in electricity charges will be implemented for 1.5 million American residents and enterprises as a reaction to U.S. President Donald Trump’s escalating trade war. The Canadian province of Ontario, which supplies electricity to locations such as Minnesota, New York, and Michigan, is making this move in response to the ongoing trade tensions.
At a recent news conference in Toronto, Ontario Premier Doug Ford expressed his reluctance but stated his readiness to take even stricter actions if necessary. “If the United States escalates, I will not hesitate to shut the electricity off completely,” Ford declared. He emphasized that the American public is not at fault, laying the blame squarely on the U.S. president’s shoulders.
Despite a temporary one-month pause offered by Trump, Ford is firm that Ontario’s new tariff will stay in place, emphasizing that the short reprieve doesn’t resolve the underlying issues. Similarly, Quebec is contemplating comparable actions regarding its electricity exports to the U.S.
The state of Minnesota is only marginally affected by Ontario’s new tariff as it receives a small amount of its electricity from the province. However, Minnesota’s Democratic Governor Tim Walz has expressed severe criticism of Trump’s policies, highlighting their damaging consequences for Minnesota residents struggling with increasing electricity costs. He stressed that “Minnesotans cannot afford Trump’s billionaire-run economy.”
Governor Walz, while conceding that Minnesota’s electricity import from Ontario is minimal, voiced concern over Manitoba potentially implementing similar tariffs. “Even if it were one megawatt, this is totally unnecessary,” he stated, pointing out that the real impact is on Minnesota ratepayers rather than affecting President Trump directly. Walz also raised fears about future disruptions, particularly regarding Canadian potash fertilizer, which is vital for agriculture.
Further discussions have occurred between Walz and the premiers of Ontario and Manitoba, revealing the broader nature of the trade dispute beyond just Minnesota. Minnesota Power, a primary utility provider in the area bordering Ontario, confirmed its minimal reliance on Ontario for power imports, suggesting negligible impacts on its customers from the tariff increase.
The Midcontinent Independent System Operator, responsible for an expansive regional power grid, also foresees little disruption, pointing out that less than half of their power comes from Canadian territories, with a smaller fraction from Ontario.
Meanwhile, in Michigan, the effect on local consumers should be minimal, according to the Michigan Public Service Commission. However, they expressed concerns regarding the stability and reliability of the interconnected grid, emphasizing the potential vulnerabilities stemming from restricted electricity flows between Canada and the U.S.
New York Governor Kathy Hochul has tasked state energy officials to analyze the possible impacts of the tariffs on electrical costs. She criticized the federal tariffs as poorly conceived and destabilizing to the economy.
This increase in Ontario’s tariff is just one thread in a much broader spectrum of retaliatory measures, including Canada’s initial $30 billion retaliation on specific American goods. Last week, Trump further fanned the flames of the trade war by targeting the U.S.’s major trading partners, which triggered immediate backlash from Mexico, Canada, and China, unsettling financial markets.
Ford echoed the widespread sentiment for resolution: “It needs to end. Until these tariffs are off the table, until the threat of tariffs is gone for good, Ontario will not relent,” emphasizing the sustained standoff until definitive actions are taken to resolve these trade tensions.