Premier Doug Ford has made good on his threat to slap a 25 per cent surcharge on electricity sold to the U.S. in retaliation for President Donald Trump‘s tariffs.
Raising an estimated $300,000 to $400,000 per day, the “tariff response charge” will be paid by utilities in New York, Michigan and Minnesota importing power from generators of electricity in Ontario.
“Until the threats of tariffs is gone for good, Ontario won’t back down,” Ford said in a statement Monday. “We’ll stand strong, use every tool in our tool kit and do whatever it takes to protect Ontario.”
To implement the surcharge on an estimated 1.5 million homes and businesses in the three states, the Ontario government filed an “urgent” regulation under the Electricity Act of 1998.
It amends the market rules used by the province’s Independent Electricity System Operator, which manages day-to-day energy needs.
Ford said his Progressive Conservative government can raise or lower the surcharge “at any time” in response to actions taken by the Trump administration.
That includes the possibility of shutting off electricity exports to the U.S. if the president escalates the trade war.
Ford last week ordered the LCBO to remove American spirits, wine and beer from store shelves and banned U.S. companies from bidding on Ontario government contracts.
“Trump’s tariffs are a disaster for the U.S. economy,” Ford added in a statement. “They’re making life more expensive for American families and businesses.”
The surcharge is priced at $10 per megawatt-hour, about 25 per cent of the cost of electricity.
Ontario transmits electricity to the three states through 12 cross-border connections — seven with New York, four with Michigan and one with Minnesota.
