Ford says Ontario to place 25% tariff on electricity to U.S. states by Monday

Ontario Premier Doug Ford says the province is going ahead with a 25 per cent tariff on the electricity it provides the U.S. by Monday.

Ford made the comments during an appearance on CNN.

“As of… this Monday, we’re putting a tariff, a 25 per cent tariff, on the electricity to the 1.5 million homes and businesses in those three states,” the premier said.

On Wednesday, Ford said he was contemplating restricting electricity exports to Michigan, New York state and Minnesota if U.S. President Donald Trump follows through on a threat to impose a 25 per cent tariff on imports from Canada.

The province says that in 2023, Ontario exported enough energy to power 1.5 million homes in those three states. Ontario’s electricity to the U.S. comes mainly from hydroelectric, nuclear, and renewable sources.

“I won’t hesitate to increase this surcharge or, if necessary, shut the electricity off completely,” Ford said. “Ontario and Canada are America’s largest customer and export destination. Unfortunately, we have been left with no choice but to respond with our own tariffs and charges that will make life more expensive for Americans at a time when the cost of living is at an all-time high.”

Ford said he felt bad about laying the surcharge, adding that he spoke with Minnesota Governor Tim Walz on Wednesday.

“All three governors think tariffs on their closest allies and friends is absolutely terrible,” Ford said.

“And Republicans, as well, behind closed doors, say this is the worst thing that he could do. And now I need the Republicans to come out and speak out about it. They’re too scared.”

Walz, a Democrat who was Kamala Harris’s running mate in her failed bid for the presidency, said Trump’s tariffs “pose a serious threat” to future trade with Canada.

“But while the president may not value the partnerships that contribute billions of dollars to our economy, Minnesota does,” Walz said in a written statement on Wednesday.

“I am working closely with Canadian leadership to help Minnesota get through this unnecessary and costly trade war.”

His office said the increased costs will be “particularly acute for industrial customers in the northeastern part of the state where energy and supply chains will get more expensive.”

“The new tariffs and response from Canada will reduce Minnesota’s competitiveness with other less-impacted regions of the United States,” Walz’s office said.

Ford said there is only one person to blame: Trump.

“Isn’t this a shame,” he said.

“This whole thing with President Trump is an absolute mess. You see uncertainty in the markets and investments around the U.S. and in Canada. People are going to lose their jobs, their pension funds that people work their whole lives for.”

Trump announced on Thursday that Mexico and Canada would not be required to pay tariffs on anything under the USMCA Agreement until April 2.

Ford said the electricity tariffs would go into effect on Monday regardless of any 30-day delay from Trump.

“There’s many things that they need,” Ford said, citing the United States’ reliance on Ontario’s critical minerals. He repeated a threat to stop shipping them nickel that gets used in the American military and aerospace sectors.

“Our key area, I’m telling you, it’s a key area, is those critical minerals.”

Trump’s tariff threats unsettle markets, shake consumer confidence

Ford and the province removed alcohol products from the U.S. from LCBO stores in response to Trump’s tariffs on Canada.

“Canada and Ontario did not start this fight,” Ford said this week. “We want to work with our American allies, not against them… The coming days and weeks will be hard; businesses and families will feel the pain of this needless fight.”

Also, on Thursday, Prime Minister Justin Trudeau indicated that he expects his country to be in a trade war with the U.S. in the foreseeable future.

Trudeau said the broader month-long pause “aligns with some of the conversations we have been having with administration officials.”

The Canadian leader said the move by the Trump administration was a “promising sign,” but it also “means that the tariffs remain in place and therefore our response will remain in place.”

Claudia Sheinbaum responded positively to Trump’s announcement that he would postpone 25 per cent tariffs on most goods imported from Mexico until April 2.

Sheinbaum posted on X that they “had an excellent and respectful call in which we agreed that our work and collaboration have yielded unprecedented results.”

With files from The Canadian Press