Ontario Hits Back At Trump’s Trade War With 25% Electricity Rise For 1.5 Million Americans

Ontario’s premier, the leader of Canada’s most populous province, announced that effective on Monday it would be charging 25 per cent more for electricity to 1.5 million Americans in response to US 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 States 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.

Ford’s office said the new market rules required any generator selling electricity to the US to add a 25 per cent surcharge. Ontario’s government expects it to generate revenue of C$300,000 to C$400,000 (US$208,000 to US$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 C$30 billion (US$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.

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 per cent tariffs on many goods from Canada and Mexico for a month, amid widespread fears of a broader trade war.

Ontario Premier Doug Ford responds to US. President Donald Trump’s new 25 per cent tariffs on imports from Mexico and Canada, in Toronto, Ontario on March 4. Photo: Reuters

Ford estimated it will add about C$100 (US$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 continued to attack Canada, he will do everything it takes to maximise 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 US carmakers to move production from Canada and Mexico to the US. Last week Trump granted a one-month exemption to 25 per cent tariffs on vehicles and car parts traded through the North American trade agreement USMCA after speaking to leaders of Ford, General Motors and Stellantis. Ontario is the auto sector hub of Canada.

Premier Ford also noted Trump is threatening Canada with steel, aluminium 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 US needs Canada’s power and it could impact other states as well as the three states that often resale Ontario’s electricity. “It is regrettable we are here,” Lecce said.

Trump’s trade war and his talk of making Canada the 51st US state have infuriated Canadians, who are booing the American anthem at NHL and NBA games. Some are cancelling trips south of the border, and many are avoiding buying American goods when they can.

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 US.

“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 US does not need Canada, nearly a quarter of the oil America consumes per day comes from Canada. About 60 per cent of US crude oil imports are from Canada, and 85 per cent of US electricity imports as well.

Canada is also the largest foreign supplier of steel, aluminium and uranium to the US and has 34 critical minerals and metals that the Pentagon is eager for and investing for national security. Nearly C$3.6 billion S$2.7 billion) worth of goods and services cross the border each day.