Ontario to Americans: Pay more or lose power amid Trump’s trade war

Ontario Premier Doug Ford has announced a 25% surcharge on electricity exports to the United States, marking a major escalation in trade tensions between Canada and the US. The new tariff, which took effect on Monday, applies to 1.5 million American customers in Minnesota, New York, and Michigan, a move Ford described as a necessary response to US President Donald Trump‘s aggressive trade policies.

“If the United States escalates further, I will not hesitate to increase this charge,” Ford stated in Toronto, warning that he would even consider cutting off power supplies if necessary. While acknowledging that American citizens were not responsible for the ongoing trade conflict, Ford squarely placed the blame on Trump, saying, “It’s one person who is responsible—it’s President Trump.”

Despite an offer from the White House to delay tariff measures for one month, Ford insisted that Ontario would maintain the surcharge, arguing that temporary pauses create uncertainty for businesses and workers.

Ontario Expects Millions in Revenue From US Electricity Tariff

According to Ford’s office, all electricity generators exporting power to the US must now include the 25% surcharge, which is projected to generate between $208,000 and $277,000 per day in additional revenue. The Ontario government has committed to using these funds to support workers, families, and businesses affected by ongoing trade disputes.

This move comes in addition to Canada’s existing $21 billion in retaliatory tariffs on US goods. The federal government has already imposed higher import duties on products such as orange juice, peanut butter, coffee, household appliances, footwear, cosmetics, motorcycles, and pulp and paper products in response to Trump’s trade actions.

Mark Carney: Trump’s Second Term Is Canada’s ‘Most Significant Threat’

Meanwhile, Mark Carney, who was elected leader of Canada’s ruling Liberal Party on Sunday, has strongly condemned Trump’s policies. The former Bank of England governor is set to succeed Justin Trudeau as prime minister within the next week.

In his victory speech, Carney did not hold back, calling Trump’s second term the biggest threat Canadians have faced in their lifetime. He warned, “If they succeed, they would destroy our way of life.”

To loud cheers from supporters in Ottawa, Carney pledged to maintain Canada’s reciprocal tariffs on US goods until the American administration treated Canada with “respect.” Dismissing Trump’s earlier remarks suggesting Canada could become the 51st state, Carney declared, “Canada never, ever will be part of America in any way. Americans should make no mistake: In trade, as in hockey, Canada will win.”

Carney also laid out his broader economic vision, promising to build millions of homes, transform Canada into an energy superpower, and establish new trade corridors with reliable partners.

Trade War Intensifies as Canada and US Hold Their Ground

The electricity surcharge marks a significant escalation in economic tensions between Canada and the US, as both governments refuse to back down. Ford’s firm stance suggests that American consumers and businesses could face higher electricity costs, adding to the broader economic uncertainty triggered by Trump’s protectionist policies.

Meanwhile, Carney’s statements indicate that Canada’s new leadership will continue to challenge the US administration, potentially leading to long-term shifts in North American trade relations.

With no resolution in sight, the Ontario electricity tariff serves as a symbol of Canada’s growing resistance to Trump’s policies, setting the stage for further economic and political confrontations in the months ahead.