‘Ontario won’t back down’: Ford places 25% surcharge on U.S. electricity exports

Ontario Premier Doug Ford and Energy Minister Stephen Lecce collectively announced a 25 per cent surcharge is now in effect for electricity exports going to the United States, costing up to $400,000 every day.

Ford first hinted at the plan last week as part of the province’s retaliatory measures to U.S. tariffs on Canada.

The premier, who reiterated that the electricity tax will remain in place unless President Donald Trump removes all tariffs, said the surcharge will affect 1.5 million homes and businesses in Michigan, Minnesota and New York.

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

The provincial government says the surcharge will generate revenue of $300,000 to $400,000 daily, and the funds will be used to support Ontario workers, families and businesses.

Lecce says Canada and U.S. should be allies, not enemies

The premier acknowledged that he spoke with Minnesota Governor Tim Walz on Wednesday, saying, “All three governors think tariffs on their closest allies and friends is absolutely terrible.”

The province’s electricity tax adds a 25 per cent surcharge valued at $10 per megawatt-hour (Mwh) to the cost of power supplied to U.S. states.

“For decades, Ontario has powered American homes, factories, offices and jobs, and we will not stand by as our vital electricity exports are taken for granted,” said Lecce. “In a time where prices are going up for families in America, Canada and the United States should be working together to strengthen our trade and investment relationships to ensure a prosperous future for both sides of the border.”

According to government data, between 2021 and 2023, Ontario exported 14.6, 14.2 and 12.0 terawatt hours of electricity to the U.S.

On Tuesday, Trump imposed 25 per cent tariffs on Canadian goods and a 10 per cent levy on energy. He announced a month-long reprieve for the auto sector on Wednesday.

Canada responded with 25 per cent retaliatory tariffs on $30 billion worth of American products and said tariffs on another $125 billion in goods would follow after three weeks.

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

“On tariffs, zero compromise,” Ford said. “This attack was not started by our country. It was started by President Trump. He decided to declare an economic war against our country and our province, and we’re going to hold strong.”

The Ford government has since removed alcohol products from the U.S. from LCBO stores in response to Trump’s tariffs, costing American producers $1 billion in lost revenue, according to the province.

With files from The Canadian Press