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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowOntario’s premier, the leader of Canada’s most populous province, announced that effective Monday it is charging 25% more for electricity to 1.5 million Americans in response to U.S. President Donald Trump’s trade war.
Ontario provides electricity to Minnesota, New York and Michigan.
“I will not hesitate to increase this charge. If the United State escalates, I will not hesitate to shut the electricity off completely,” Ontario Premier Doug Ford said at a news conference in Toronto.
“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. It’s one person who is responsible, it’s President Trump.”
Ford said Ontario’s tariff would remain in place despite the one-month reprieve from Trump, noting a one-month pause means nothing but more uncertainty. Quebec is also considering taking similar measures with electricity exports to the U.S.
Ford’s office said the new market rules require any generator selling electricity to the U.S. to add a 25% surcharge. Ontario’s government expects it to generate revenue of $300,000 Canadian dollars ($208,000) to CA$400,000 ($277,000) per day, “which will be used to support Ontario workers, families and businesses.”
The new surcharge is in addition to the federal government’s initial CA$30 billion ($21 billion) worth of retaliatory tariffs have been applied on items like American orange juice, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles and certain pulp and paper products.
Trade war intensifies
Trump launched a new trade war last week by imposing tariffs against Washington’s three biggest trading partners, drawing immediate retaliation from Mexico, Canada and China and sending financial markets into a tailspin.
Trump later said he has postponed 25% tariffs on many goods from Canada and Mexico for a month, amid widespread fears of a broader trade war.
Ford estimated it will add about CA$100 ($69) a month to the bills of each American affected.
“It needs to end. Until these tariffs are off the table, until the threat of tariffs is gone for good, Ontario will not relent,” Ford said.
Ford said Trump changes his mind every day, but if he continues to attack Canada he will do everything it takes to maximize the pain.
“Republicans, at least the ones I speak to, do not agree with President Trump but they are too scared to go out there and say it publicly,” Ford said. “It’s a shame but we need to end this.”
Trump has urged U.S. automakers to move auto production from Canada and Mexico to the U.S. Last week Trump granted a one-month exemption to 25% tariffs on vehicles and auto parts traded through the North American trade agreement USMCA after speaking with leaders of automakers Ford, General Motors and Stellantis. Ontario is the auto sector hub of Canada.
Premier Ford also noted Trump is threatening Canada with steel, aluminum and diary tariffs.
“I will do whatever it takes to maximum the pain against Americans,” Ford said.
Stephen Lecce, Ontario’s minister of energy and electrification, said the U.S. needs Canada’s power and it could impact other states as well as the three states often resale Ontario’s electricity. “It is regrettable we are here,” Lecce said.
Ford calls for export taxes on Canadian oil
Trump’s trade war and his talk of making Canada the 51st U.S. state have infuriated Canadians, who are booing the American anthem at NHL and NBA games. Some are canceling trips south of the border, and many are avoiding buying American goods when they can.
Ford’s Progressive Conservative government just won reelection by standing up for Canada against Trump.
Ford said the Canadian province of Alberta should agree to put an export tax on oil. Alberta provides 4.3 million barrels of oil a day to the U.S.
“You want to talk about a Trump card. That will instantly change the game,” Ford said. “I know the Americans. If all of a sudden their gas prices go up a dollar a gallon they will lose their minds.”
Despite Trump’s claim that the U.S doesn’t need Canada, nearly a quarter of the oil America consumes per day comes from Canada. About 60% of U.S. crude oil imports are from Canada, and 85% of U.S. electricity imports as well.
Canada is also the largest foreign supplier of steel, aluminum and uranium to the U.S. and has 34 critical minerals and metals that the Pentagon is eager for and investing for national security. Nearly CA$3.6 billion ($2.7 billion) worth of goods and services cross the border each day.
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Would someone at Midwest ISO please address the electricity claim that Canada is making.
I’m pretty sure that power can be routed from inside the USA to solve the problem.
Good for Canada. Stand up to him, because our elected officials aren’t.
That’s a counterproductive mindset considering Canada has been using tariffs on the USA years before Trump took office. Im not sure why Americans aren’t backing the president for simply wanting China, Mexico and CANADA to treat us fairly. How is it ok for them to use tariffs on American goods but once we get a president with a backbone thats willing to stand up for American business, the citizens side with the other country thats disrespecting us. The Canadian government must clearly think the American people are simple minded people that clearly think and make decisions with their emotions. Childs play….
Yes, and when Trump first took office in 2017, he imposed tariffs to force through a new trade agreement. Exactly why wasn’t he able to fix the issues then? It’s not like Biden changed anything … and don’t forget, his stated reason for tariffs this time was fentanyl and immigrants, not trade.
Hey, if Trump’s willing to roll back his beloved tax cuts on the ultra wealthy to finance the American people through this self-imposed disruption, to help us all get through this period, then maybe I’d have a different opinion. Give citizens the same bailout that farmers are getting as they lose all their export markets.
If not for energy exports to the US, Canada runs a trade deficit with the US. Trump lied again recently about the Canadian dairy tariffs HE negotiated. Simply put, Canada isn’t collecting any tariffs from the US on dairy, because everything shipping from the US to Canada is less than or about half of the permitted amount negotiated by Trump before Canadian tariffs kick in.
Yes, MISO says it can cover the Canadian power price spike by buying non-Canadian power. Until the spring and summer storms hit and knock out the US grid.
And more to come…Canada contemplates cutting off all energy exports to the US and shipping it to China, England, and the EU. Most of the gasoline used in the New England states comes from Canada…
This could be a long trade war, unless Trusk extracts his head from whatever orifice it is occupying, and realizes in the long run this does not benefit the US. Alienating our allies and having them sell to others is not in the best interest of the US. Having our former allies reach new deals among themselves to produce goods and military equipment is not good for the US.
as for Canadians thinking we’re simple minded, they can reasonably reach that conclusion as to the approximately half of the US that voted for Trusk.
Tell me Kevin P, what happens if Canada decides to shut down the US bases in northern Canada that monitor for Russian missles? Or, decides to no longer permit US airlines to use Canadian airspace to fly from US cities to US cities without landing in Canada. Not sure what happens? US air traffic for the eastern half of the US, going into most of the major airports north of Virginia, slows to a crawl. If you’re flying out of or into Detroit, Minneapolis, or Chicago and an east coast city, you’re probably flying over Canada for some or most of the flight…
Are we WINING yet?!?
These things take time. Do your research and tell me how many products do America really need from Canada that we couldn’t produce on our own? What Canadian car, electronics or clothing line do American’s are just flocking to the department stores to buy other than whisky, lumber, fuel and some farm products? All those things could easily be produced and have been produced here. Canada isn’t needed as much as most think.
Indiana Depends on World Markets
The state’s largest market was Canada. Indiana exported $13.9 billion in goods to Canada in 2024, representing 23 percent of the state’s total goods exports.
Canada was followed by Mexico ($7.5 billion), Italy ($6.5 billion), China ($5.1 billion), and Germany ($4.2 billion).
https://ustr.gov/map/state-benefits/in
Trump is jeopardizing $25 billion in exports from Indiana to Canada, Mexico, and China.
If you extrapolate the math, that’s nearly 50% of what we produce as a state. And we are just magically gonna find new markets for all that?
Tell me you’ve been visiting all the states around Indiana that allow recreational marijuana without telling me.
Many “American” cars are assembled in Ontario, Canada. (Chrysler has been big there for decades.)
Many Honda and Toyota products are also made there. Note that the best selling vehicle in the US is no longer the Ford F150…it’s the Toyota RAV4, built in Ontario and Kentucky.
You’re saying the President should be allowed to interfere with Americans’ freedom to choose the best vehicle for them, Kevin?
Kevin is absolutely telling on himself. He’s basically economically illiterate.
The funny part about this is Doug Ford is conservative. And, it turns out, as big a “Canada First” guy as 47 is “America First”. This reaction is entirely predictable and in character.