Ontario to impose 25% tariffs on electricity exports to 3 US states Monday

• In Canada, Ontario Premier Doug Ford announced a 25% tariff on electricity exports to Michigan, New York and Minnesota starting Monday. This comes in response to President Trump’s proposed 25% tariffs on most Canadian goods. They were previously expected to be implemented Tuesday but were then pushed back to April 2.
• Officials in the affected U.S. states warned that the tariffs could raise costs and threaten grid stability for about 1.5 million customers.
• Quebec’s premier suggested power exports to New England may face similar tariffs or an altogether stoppage.

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Ontario Premier Doug Ford announced on Thursday, March 6, that his province would impose a 25% tariff on electricity exports to Michigan, New York and Minnesota. Ford said this move is a countermeasure to U.S. President Donald Trump’s proposed 25% tariffs on most imports from Canada.

“It’s an absolute mess. He’s created chaos,” Ford said in an interview with Fox Business Network. “The situation he has put American families in, Canadian families and around the world, it’s just going to hurt.”

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Why is this happening?

The Canadian lawmaker stated that these new energy tariffs on three U.S. states will be implemented on Monday, March 10. Trump’s tariffs on Canada were going to take effect this Tuesday, March 11. However, he later signed an executive order delaying their implementation until April 2.

However, just a day after postponing that trade measure, the president on Friday, March 7, threatened Canada with a new 250% tax on U.S. dairy exports to the country.

How will this impact Americans?

In response to Ontario’s upcoming energy tariff, officials in affected states say the move could raise costs and threaten grid stability for the 1.5 million customers across Minnesota, Michigan and New York who receive power from the province.

While Canada’s hydropower exports to the U.S. represent a small fraction of total U.S. electricity generation, experts warn that the integrated grid between the two countries is essential for maintaining reliability.

What are affected states saying?

The Minnesota Commerce Department issued a statement describing the tariffs as a “manmade crisis.” The department warned of potentially higher energy costs for residents. In Michigan, Matt Helms, a spokesperson for the state’s utility regulator, also cited potential reliability issues as one of the agency’s main concerns related to the tariffs.

The New York Independent System Operator, which manages New York’s power grid, previously released a statement. They raised “serious concerns that applying export tariffs to electricity may have serious adverse effects on reliability and wholesale electric markets.”

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What happens next?

Elsewhere, the premier of Quebec, François Legault, has also indicated that his province may consider imposing similar tariffs on power exports to New England, or halting them altogether, if trade tensions continue.