The leader of Canada’s most populous province has followed through on a pledge to hike electricity prices for Americans in response to President Trump’s tariffs as residents of US border states New York, Minnesota and Michigan can expect to pay more for power.
The Canadian province of Ontario raised electricity export prices by 25% for the three American states on Monday — marking a direct response to the escalating trade dispute between the two countries.
Ontario Premier Doug Ford ordered the Independent Electricity System Operator, which oversees the province’s electricity market, to implement a $7-per-megawatt-per-hour fee on all power exports to the three states, Bloomberg News reported.
The decision follows through on a promise Ford made last week when the US tariffs on Canadian goods went into effect.
“Believe me when I say I don’t want to do this. I feel terrible for the American people,” Ford said.
“It’s one person who is responsible. That’s President Donald Trump.”
The White House recently agreed to exempt cars and select goods from the tariffs under existing trade agreements, but Ontario proceeded with the price increase as planned.
Ford’s government emphasized that revenue generated from the surcharge — potentially as much as $276,000 per day — would be reinvested to support workers, families and businesses within the province.
Canada’s foreign affairs minister, Melanie Joly, welcomed the move as a strategic use of provincial resources.
“If the premiers use levers that are to our advantage, good news,” she told reporters on Monday.
Despite the aggressive stance, the actual impact on US consumers may be minimal.
Electricity prices on US spot markets, where power is bought and sold in real-time, fluctuate based on supply and demand.
With multiple sources available, American buyers are not obligated to purchase from Ontario, meaning they may be able to source cheaper electricity from alternative suppliers.
New York imported about 4.4% of its total electricity from Canada in 2023, according to Bloomberg calculations using data from the state’s grid operator.
Minnesota and Michigan relied on Canadian imports even less, according to the Midcontinent Independent System Operator (MISO), which manages the power grid across much of the Midwest.
“In 2024, less than 1% of MISO’s total energy was supplied via Canadian imports and less than half of that came from Ontario,” MISO spokesperson Brandon Morris said in an email to Bloomberg News.
“For context, that amount is equivalent to approximately one power plant. MISO manages the loss of power plants like this every day to ensure reliability across our footprint.”
Ontario has several key transmission links to the United States, including seven connections with New York, four with Michigan and one with Minnesota.
However, the modest scale of Canadian imports in the three states means that while the price increase sends a political message, its practical impact on electricity consumers in the US may be limited.
The retaliatory move underscores the broader tensions between Canada and the United States as Trump’s tariff policies continue to reshape trade relations.
The Post has sought comment from the White House and the New York Power Authority.
