- Ontario imposes a 25% surcharge on electricity exports to U.S. states in response to Trump’s tariffs.
- The surcharge impacts 1.5 million American homes in New York, Michigan, and Minnesota.
- Canada also enforces $30 billion in retaliatory tariffs as trade tensions escalate.
Ontario, Canada’s most populous province, has announced a retaliatory 25% surcharge on electricity exports to the United States in response to President Donald Trump’s tariffs on Canadian goods.
Premier Doug Ford confirmed the measure on Monday, stating that it would raise costs for U.S. customers by approximately $10 (£7.75) per megawatt-hour. The surcharge is expected to impact around 1.5 million homes in New York, Michigan, and Minnesota.
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Ford declared that the new energy tariff would remain in effect until the U.S. removes its trade restrictions on Canadian goods.
“President Trump’s tariffs are a disaster for the U.S. economy. They’re making life more expensive for American families and businesses,” Ford said in a statement.
The Ontario government plans to use the revenue from the surcharge to support Canadian workers and businesses hurt by U.S. tariffs.
Meanwhile, Canada’s federal government has imposed its own dollar-for-dollar countermeasures on $30 billion worth of U.S. exports, affecting products such as clothing, perfume, and orange juice.
President Trump has threatened a blanket 25% tariff on all Canadian exports—a move that economists warn could result in job losses in Canada and rising prices for U.S. consumers. Similar tariffs have also been considered for Mexico.
Although Trump temporarily spared automakers from tariffs until April 2, he reduced tariffs on Canadian potash from 25% to 10%—a critical concession for U.S. farmers who rely on the mineral for fertiliser.
Despite these exemptions, Trump is still expected to impose tariffs on Canadian steel and aluminum this week, escalating trade tensions between the two nations.
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The tariff standoff has rattled financial markets, with the S&P 500 plunging to its lowest level since September. In a Fox News interview, Trump acknowledged concerns about a potential recession, but suggested that the economic impact would be temporary:
“It takes a little time, but I think it should be great for us.”
