Leaders of Canada's most populous states continue on their pledge that residents of US border nations, as residents of New York, Minnesota and Michigan, will try to raise electricity prices for Americans in response to President Trump's tariffs.
Canada's Ontario raised electricity export prices by 25% in three American provinces on Monday.
Ontario Premier Dougford has ordered independent power system operators who oversee the province's electricity market to implement a fee of $7 per hour for all electricity exports to the three provinces. This was reported by Bloomberg News.
The decision follows a promise made last week when US tariffs came into effect on Canadian goods.
“If I say I don't want to do this, trust me. I feel it's scary to Americans,” Ford said.
“One person is responsible for it. That's President Donald Trump.”
The White House recently agreed to exempt vehicles and select goods from tariffs under existing trade agreements, but Ontario has made its price rise as planned.
The Ford government emphasized that revenue generated from the surcharge (potentially as much as $276,000 per day) will be reinvested to support workers, families and businesses in the state.
Canadian Foreign Minister Melanie Jolly welcomed the move as a strategic use of local resources.
“If the Premier uses levers for our benefit, it's good news,” she told reporters Monday.
Despite being a proactive attitude, the actual impact on US consumers may be minimal.
The electricity prices in the US spot market where electricity is bought and sold in real time and fluctuate based on supply and demand.
With multiple sources available, American buyers are not obligated to purchase from Ontario. This means that you could potentially source cheaper electricity from alternative suppliers.
New York imported approximately 4.4% of its total electricity from Canada in 2023, according to Bloomberg calculations using data from state grid operators.
Minnesota and Michigan relied on Canadian imports, according to the Midcontinent Independent System Operator (MISO), which manages power grids in most of the Midwest.
“In 2024, less than 1% of Ajio's total energy was sourced through Canadian imports, with less than half of that coming from Ontario,” Ajio spokesman Brandon Morris said in an email to Bloomberg News.
“In the context, that amount corresponds to about one power plant. MISO manages the losses of these power plants every day to ensure reliability across our footprint.”
Ontario has several important transmission links to the United States, including seven connections with New York, four with Michigan and Minnesota.
However, the modest size of Canadian imports in the three provinces means that price increases may send political messages while still limiting practical impact on US electricity consumers.
The retaliatory move highlights wider tensions between Canada and the US as Trump's tariff policies continue to restructure trade relations.
The post is seeking comment from the White House and New York electricity authorities.
