Ontario, Canada’s most populous province, announced a 25% hike in electricity export tariffs for nearly 1.5 million American consumers living in Minnesota, New York, and Michigan. The move is a retaliation against US President Donald Trump’s decision to levy import tariffs on some Canadian goods and energy.
The revised prices will be effective on Monday. Ontario Premier Doug Ford said, “I will not hesitate to increase this charge. If the United States escalates, I will not hesitate to shut the electricity off completely.”
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“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,” he added.
The provincial government expects to generate a revenue of $300,000 Canadian dollars ($208,000) to CA$ 400,000 ($277,000) per day by imposing a 25% surcharge on electricity supplied to American consumers. Ford’s office said the increased revenue “will be used to support Ontario workers, families and businesses.”
Ontario’s electricity tariffs are in addition to the federal government’s $21 billion worth retaliatory tariffs on several American products, which will not be revoked unless Trump rescinds his tariffs completely. The US president has suspended his 25% levies on most Canadian imports under the trade agreement for a month as trade disputes ignited fears of inflation and economic downturn.
The provincial premier called for US tariffs to end. “Until these tariffs are off the table, until the threat of tariffs is gone for good, Ontario will not relent,” he said, vowing to maximise pain on the Americans as Trump keeps changing his stance “every day” and continues to attack Canada.
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“I will do whatever it takes to maximize the pain against Americans,” Ford said.
Trump’s decision to provoke a tariff war with the country’s three biggest trading partners drew immediate retaliation from Mexico, Canada and China and sent financial markets into a tailspin.
(With agency inputs)
