Ontario’s premier has announced 25% tariff on electricity exports on Monday in retaliation to the Trump Administration’s trade war, in a move expected to impact Minnesotans
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Canada’s most populous province exports energy to around 1.5 million homes in Minnesota, Michigan and New York.
President Trump announced the 25% tariffs on U.S. exports to Mexico and Canada starting last week, but after imposing an initial wave of tariffs on $21 billion of U.S. goods, he delayed a larger, second round until Apr. 2 amid economic concerns of a broader trade war that has sent U.S. stocks plummeting.
But Ontario Premier Doug Ford announced his province would move forward with its energy export tariffs, saying: “President Trump’s tariffs are a disaster for the U.S. economy. They’re making life more expensive for American families and businesses.
“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.”
Ford also reiterated in a press conference that if Trump continues to escalate the trade war with Canada, Ontario is willing to completely turn off the electricity supply to the U.S. He previously announced his same intentions last week.
Beginning Monday, new market rules require any generator selling electricity to the U.S. to add a 25% surcharge, according to Ford’s office. Ontario’s government expects to generate revenue of $300,000 to $400,000 Canadian dollars per day, “which will be used to support Ontario workers, families and businesses.”
“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 Stephen Lecce, Minister of Energy and Electrification. “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.”
Of Ontario’s 26 transmission connections with neighboring jurisdictions, one exists in Minnesota.
A spokesperson for Minnesota Power tells Bring Me The News while it does have an electric grid connection with Ontario, it imports more electricity from Manitoba than it does from Ontario.
“Only a very small portion of our electricity comes from Ontario, in 2024 those costs totaled about $300,000. So we would expect the impact on our customers to be negligible,” spokesperson Amy Rutledge said.
In 2024, Minnesota Power didn’t import any electricity from Ontario in eight months of the year.
Manitoba Hydro accounts for 11% of Minnesota Power’s energy and Rutledge said Minnesota Power spent $108 million on energy from Manitoba last year. The Duluth-based energy company is the largest utility company in northern Minnesota.
However, that doesn’t necessarily mean Manitoba would be left out of the tariff conversation and any similar move from that province could have much larger impact on northern Minnesotans. The province has yet to announce anything official as of Monday.
As for Xcel Energy, it doesn’t import any electricity or natural gas directly from Ontario.
Minnesota Gov. Tim Walz reacted to the news on Twitter, saying Minnesotans will be victims of a “skyrocketing electric bill.”
“Minnesota cannot afford Trump’s billionaire-run economy. We have to put a stop to this madness,” Walz said.
The new surcharge is in addition to Canada imposing an initial round of $30 billion in retaliatory tariffs. It impacts products such as orange juice, peanut butter, wine, coffee and more. LCBO, the largest buyer of alcohol in the world, has also removed all U.S. products from its Canadian shelves, costing U.S. producers $1 billion in lost revenue, according to Ford’s office.
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