Ontario has imposed a 25% surcharge on electricity exports to Minnesota, Michigan, and New York in response to President Donald Trump’s tariffs on Canadian goods. The new fee adds C$10 ($7) per megawatt-hour to power exports, potentially generating up to C$400,000 daily to support Ontario’s economy.
New York sourced about 4.4% of its electricity from Canada in 2023, while Minnesota and Michigan imported even less, making the surcharge’s overall impact relatively minor. The region’s grid operators have stated that the loss of this electricity supply is manageable.
Premier Doug Ford expressed regret over the move, blaming Trump for forcing Ontario’s hand. He vowed to uphold the levy even after the U.S. exempted certain goods from the new tariffs. However, the surcharge’s effect may be largely symbolic, as U.S. electricity markets allow buyers to source power from alternative suppliers based on demand.
