Ontario, Canada is charging 25% more for electricity to 1.5 million Americans
Ontario’s premier, leader of Canada’s most populous province, announced that starting Monday, the province will impose a 25% surcharge on electricity exports to 1.5 million Americans in response to U.S. President Donald Trump’s trade war.
Ontario supplies electricity to Minnesota, New York, and Michigan.
"I will not hesitate to increase this charge. If the United States escalates, I will not hesitate to shut the electricity off completely," Premier Doug Ford said at a Toronto news conference.
"Believe me when I say I do not want to do this. I feel terrible for the American people who didn’t start this trade war. There is only one person responsible—President Trump."
Ford made it clear that Ontario’s new electricity tariff would remain in place despite Trump’s temporary one-month reprieve on other tariffs, arguing that a short pause only creates more uncertainty. Quebec is also considering similar measures on its electricity exports to the U.S.
Ford’s office confirmed that under the new market rules, any electricity sold to the U.S. will include a 25% surcharge. Ontario’s government expects this to generate between CA$300,000 ($208,000 USD) and CA$400,000 ($277,000 USD) per day, with proceeds directed toward supporting Ontario workers, families, and businesses.
The electricity surcharge comes in addition to CA$30 billion ($21 billion USD) worth of retaliatory federal tariffs imposed on American products, including orange juice, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles, and certain pulp and paper goods.
Trade War Intensifies
Last week, Trump escalated trade tensions by slapping tariffs on Washington’s three largest trading partners—Canada, Mexico, and China—prompting immediate retaliation and sending financial markets into turmoil.
While Trump later delayed imposing 25% tariffs on many Canadian and Mexican goods for a month, Ford dismissed the move, estimating the new Ontario electricity surcharge will add about CA$100 ($69 USD) per month to affected Americans' electricity bills.
"This needs to end. Until these tariffs are off the table—until the threat of tariffs is gone for good—Ontario will not back down," Ford said.
Ford accused Trump of constantly shifting positions but warned that if attacks on Canada continue, Ontario will do everything possible to "maximize the pain" on the U.S.
"Republicans—the ones I speak to—don’t agree with Trump, but they’re too afraid to say it publicly," Ford said. "It’s a shame, but we need to put an end to this."
Trump has urged American automakers to shift production from Canada and Mexico to the U.S. Last week, he granted a one-month exemption on 25% tariffs for vehicles and auto parts under the U.S.-Mexico-Canada Agreement (USMCA) after discussions with Ford, General Motors, and Stellantis executives. Ontario remains the heart of Canada’s auto sector.
Ford also pointed out that Trump is threatening new tariffs on Canadian steel, aluminum, and dairy.
"I will do whatever it takes to maximize the pain against Americans," Ford reiterated.
Ontario’s Minister of Energy and Electrification, Stephen Lecce, emphasized that the U.S. depends on Canadian electricity, and the surcharge could affect more than just the three states directly impacted, as they often resell Ontario’s power.
"It is regrettable that we’ve reached this point," Lecce said.
Calls for Canadian Oil Export Tax
Trump’s trade war, along with his suggestion that Canada should become the 51st U.S. state, has sparked widespread backlash among Canadians. American national anthems are being booed at NHL and NBA games, some Canadians are canceling trips south of the border, and many are deliberately avoiding U.S. products.
Ford, whose Progressive Conservative government was recently re-elected on a platform of standing up to Trump, also called for Alberta to impose an export tax on oil. Alberta supplies 4.3 million barrels of oil per day to the U.S.
"You want to talk about a Trump card? That would instantly change the game," Ford said. "I know the Americans—if their gas prices suddenly jump by a dollar per gallon, they’ll lose their minds."
Despite Trump’s claims that the U.S. doesn’t need Canada, nearly a quarter of the oil consumed in America comes from Canada. About 60% of U.S. crude oil imports originate from Canada, along with 85% of its imported electricity.
Canada is also the largest foreign supplier of steel, aluminum, and uranium to the U.S. and possesses 34 critical minerals and metals that the Pentagon considers vital for national security. Every day, nearly CA$3.6 billion ($2.7 billion USD) in goods and services cross the U.S.-Canada border.