Ontario Applies 25 Per Cent Surcharge on Electricity Exports to United States

Surcharge part of initial retaliatory measures that will remain in place until U.S. tariffs are removed for good

The Voice of Canada :

Ontario government has applied a 25 per cent surcharge on all electricity exports to the United States as part of the province’s initial suite of retaliatory measures to U.S. tariffs on Canada. This surcharge will affect 1.5 million homes and businesses in Michigan, Minnesota and New York, costing up to $400,000 every day the surcharge remains in place.

“President Trump’s tariffs are a disaster for the U.S. economy. They’re making life more expensive for American families and businesses,” said Premier Doug Ford. “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.”

Starting today, new market rules are in effect that require any generator selling electricity to the U.S. to add a 25 per cent surcharge valued at $10 per megawatt-hour (Mwh) to the cost of power. At this level, the surcharge will generate revenue of $300,000 to $400,000 per day, which will be used to support Ontario workers, families and businesses.

The government will use every tool at its disposal to protect Ontario workers and families from President Trump’s tariffs, including increasing this surcharge at any time or, if the U.S. escalates, cutting off electricity exports to the U.S. completely.

“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.”

The new surcharge is in addition to the Government of Canada imposing an initial round of $30 billion in retaliatory tariffs. In Ontario, LCBO, the largest buyer of alcohol in the world, has removed all United States products from its shelves, costing American producers $1 billion in lost revenue. Ontario has also banned U.S. companies from participating in an estimated $30 billion worth of annual government procurement.

Quick Facts

• Ontario currently exports electricity generated across the province directly to Michigan, New York and Minnesota.
• Between 2021 and 2023, Ontario exported 14.6, 14.2 and 12.0 terawatt hours of electricity to the United States.
• Ontario has 26 transmission connections with neighbouring jurisdictions: 11 with Quebec, three with Manitoba, one with Minnesota, four with Michigan and seven with New York.