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A top Canadian official has announced that he will move forward with a 25% tariff on electricity exports to three US states despite President Trump’s decision to pause tariffs on Canada.
Some shit you should know before you read: If you haven’t been following along, the tariff dispute between the US, Canada, and Mexico has been a rollercoaster. In early February, President Trump threatened to impose 25% tariffs on imports from Canada and Mexico, citing concerns over trade imbalances and border security. However, he initially announced a 30-day pause, stating that the tariffs would be reviewed if both countries increased their border enforcement efforts. In early March, Trump reimposed the tariffs, claiming that not enough progress had been made, leading to beef between the three nations. Within a week, Trump announced a one-month pause on some of the tariffs from both Canada and Mexico.
What’s going on now: Despite Trump’s move to delay some tariffs, Ontario Premier Doug Ford is moving forward with a 25% tariff on electricity exports to the United States, impacting Michigan, New York, and Minnesota. Ford defended the decision, arguing that Canada must stand up for itself amid ongoing trade uncertainty
Ontario, a major electricity supplier to the US, exports billions of kilowatt-hours annually to the US, playing a key role in stabilizing the shared power grid. Officials in the affected states estimate that 1.5 million customers rely on this imported power, and Ford acknowledged the potential consequences, stating, “It really bothers me we have to do this… but we have to follow through.”
Ford expressed frustration regarding the overall repercussions the tariffs would have on the economy, but insisted that something must be done by Canada. “This whole situation is a shame. It’s an absolute mess” he noted, accusing Trump of having caused an economic mess. He then cautioned that the tariffs would increase costs for American and Canadian households while saying, “The market is crashing faster than a runaway bobsled, and it’s unacceptable.”
State officials and regulators have voiced strong concerns over the impact of Ontario’s electricity tariffs, warning of higher costs and potential disruptions to grid reliability. The New York Independent System Operator (NYISO) issued a statement emphasizing that the US and Canada share “one of the most integrated international electric grids in the world” and that applying export tariffs could have “serious adverse effects on reliability and wholesale electric markets.”
In Michigan, Public Service Commission spokesperson Matt Helms called the potential reliability issues one of the agency’s “most significant concerns,” though he declined to comment further on Ford’s latest announcement.
Meanwhile, the Minnesota Commerce Department condemned the tariffs as a “manmade crisis,” acknowledging that while the state could keep the lights on, energy bills would likely rise significantly.
