Ontario slaps 25% increase on electricity exports to US in response to Trump’s trade war

TORONTO (AP) — Ontario’s premier, the leader of Canada’s most populous province, announced that effective Monday his province 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.

“President Trump’s tariffs are a disaster for the U.S. economy. They’re making life more expensive for American families and businesses,” Ontario Premier Doug 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 has 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 require any generator selling electricity to the U.S. to add a 25% surcharge to the U.S. Ontario’s government expects it to generate revenue of $300,000 Canadian (US$208,000) to $400,000 Canadian (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 $30 billion Canadian (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% tariffs on many goods from Canada and Mexico for a month, amid widespread fears of a broader trade war.