Ontario Premier Responds to U.S. Trade Tensions with Electricity Tariff Increase
In a bold move reflecting escalating trade tensions, Ontario’s premier has announced a significant increase in electricity tariffs for American consumers. Starting Monday, a 25% surcharge will be applied to electricity exported to 1.5 million Americans as a response to U.S. President Donald Trump’s trade policies.
Ontario currently supplies electricity to states such as Minnesota, New York, and Michigan. Premier Doug Ford, addressing the issue at a Toronto news conference, expressed his reluctance about the decision. “I will not hesitate to increase this charge. If the United States escalates, I will not hesitate to shut the electricity off completely,” he stated. Ford emphasized that the blame for the trade dispute lies solely with President Trump, saying, “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.”
Despite Trump’s recent decision to delay imposing further tariffs for a month, Ford insists that Ontario’s new tariff will persist. He argues that a temporary reprieve only adds to the prevailing uncertainty. The surcharge applies to any electricity generator selling power to the U.S., a measure anticipated to generate between CA$300,000 ($208,000) and CA$400,000 ($277,000) daily. The revenue is intended to support local workers, families, and businesses in Ontario.
This move is part of a broader response to the federal government’s initial CA$30 billion ($21 billion) retaliatory tariffs. These tariffs have affected a range of American products, including orange juice, peanut butter, coffee, and more.
The recent trade tensions were exacerbated when Trump initiated a trade war by imposing tariffs on major trading partners, prompting immediate reactions from Mexico, Canada, and China. Although Trump has postponed tariffs on Canadian and Mexican goods for a month, there are ongoing concerns about a potential broader trade conflict.
Ford estimates the new surcharge will increase monthly electricity bills for affected Americans by about CA$100 ($69). He emphasized, “It needs to end. Until these tariffs are off the table, until the threat of tariffs is gone for good, Ontario will not relent.” The Premier further criticized Trump’s unpredictability and vowed to counter any attacks on Canada.
Reflecting on the political climate, Ford remarked, “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.”
Trump has urged U.S. automakers to relocate production from Canada and Mexico to the United States, recently allowing a one-month delay on auto tariffs under the USMCA agreement after discussions with major automotive leaders.
Ontario’s Minister of Energy and Electrification, Stephen Lecce, highlighted the importance of Canada’s power to the U.S., noting potential impacts on other states due to resale practices. “It is regrettable we are here,” he commented.
The escalating trade tensions have stirred discontent among Canadians, with public expressions of dissatisfaction such as booing the American anthem at sports events and choosing to avoid American products. Ford’s administration recently secured reelection, largely on a platform of standing firm against Trump’s policies.
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