Ontario sets 25% surcharge on US energy exports to counter Trump tariffs

The Canadian province of Ontario is imposing a 25% surcharge on electricity exports to the states of New York, Michigan and Minnesota in protest against Donald Trump’s tariffs, Premier Doug Ford said on Monday.

“President Trump’s tariffs are a disaster for the US economy. They’re making life more expensive for American families and businesses,” Ford said in a statement.

“Until the threat of tariffs is gone for good, Ontario won’t back down. We’ll stand strong, use every tool in our toolkit and do whatever it takes to protect Ontario.”

Ford said the government had told the province’s Independent Electricity System Operator that any generator selling electricity to the US was now required to add a 25% surcharge valued at $10 per megawatt-hour to the cost of power.

At this level, the surcharge will generate revenue of C$300,000 to C$400,000 ($432,346 to $576,462) a day, the statement said.

Ontario, the country’s most populous province, has deep economic connections with the US that would be hit hard by Trump’s threat of 25% tariffs, which he has repeatedly promised, retracted and promised again.

Last month Ford cancelled the province’s $100m contract with Starlink, the satellite service owned by Elon Musk, who has been a key adviser to Trump. The move left some remote communities without other options for how to start providing internet access to their residents.

Ontario is also among several provinces to have pulled US alcohol, such as Jack Daniel’s whiskey, off its shelves in protest against Trump’s tariffs, which the US president has threatened against Mexico and other fellow traditional allies of the US.

Reuters contributed reporting