Ontario Suspends 25% Electricity Tariff

Earlier today, Ontario, Canada's most populous province, announced an increase in electricity export prices by 25% for New York, Michigan, and Minnesota in response to President Donald Trump's tariffs. Responding to Ontario's electricity price hike, Trump doubled tariffs on Canadian aluminum and steel. Then, Ontario Premier Doug Ford said he was suspending the province’s 25% surtax following a conversation with U.S. Commerce Secretary Howard Lutnick, saying Lutnick offered an olive branch, promting Trump to also back off his 50% metal tariff. 

The Details: Ontario Premier Doug Ford originally ordered an implementation of a $7-per-megawatt-per-hour fee on all power exports to the three states. “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.” Ford said that the charge would stay in place despite Trump's one-month reprieve from tariffs, noting it only added uncertainty. 

For Context: Trump's tariffs, which went into effect on March 4, taxed imports from Canada and Mexico at 25% but exempted cars and USMCA-compliant goods until April. Canadian energy products were subject to 10% import duties. Canadian electricity is sold to 1.5 million Americans. 

How The Media Covered It: The Star Tribune (Lean Left) reported that the tax was expected to have little to no impact on Minnesota or the bills of its electric customers, as Minnesota's biggest utilities use little power from Ontario. It also noted Gov. Tim Walz's criticism of Trump's escalating trade war. The New York Post (Lean Right) noted the limited effects for US consumers given our modest Canadian imports, saying “price increase sends a political message.”

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