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Canada has officially kicked off a major trade retaliation against the US by imposing a 25% surcharge on electricity exports.
Some shit you should know before you read: If you’re unaware, the trade dispute between the US and Canada began when President Trump initially threatened to impose 25% tariffs on Canadian and Mexican imports, citing their failure to address illegal immigration and fentanyl trafficking at the US border. In response, both countries said they would implement stronger border protections, leading Trump to pause the tariffs temporarily. However, roughly a week later, Trump announced he was reimposing the tariffs, arguing that their efforts were insufficient. After facing backlash, he then partially rolled back the tariffs for products covered under the US-Mexico-Canada Agreement (USMCA), delaying their enforcement until April 2. Despite this, Trump has warned to escalate tensions by threatening additional reciprocal tariffs on Canadian goods, claiming Canada is taking advantage of American farmers and warning that further trade penalties could be imposed at any time.
What’s going on now: In an announcement, Canadian officials confirmed they are moving forward with a 25% surcharge on electricity exports to the US, marking one of the most aggressive retaliatory measures taken in response to President Trump’s tariffs. The surcharge, which goes into effect Monday, will primarily affect electricity exports from Ontario to the states of Minnesota, Michigan, and New York—three of the largest importers of Canadian power.
Ontario’s government estimates that the tariff will generate between $208,000 and $277,000 (USD) per day, amounting to nearly $100 million per year in additional revenue. Premier Doug Ford warned that the surcharge could increase further, or Ontario could halt electricity exports entirely, if Trump does not remove his tariffs on Canadian goods.
The impact of this surcharge will be felt directly by about 1.5 million homes and businesses that currently rely on electricity from Ontario. Households in affected states are expected to see an average increase of $75 per month on their electricity bills. New York, in particular, relies on Ontario for up to 2,500 megawatts of power, making it one of the most vulnerable states to price hikes. Michigan also imports electricity from Ontario, though much of it flows through the state to other regions, making the direct impact more difficult to quantify.
In a statement, Premier Ford said, “Believe me when I say I do not want to do this. I feel terrible for the American people who didn’t start this trade war. It’s one person who is responsible, it’s President Trump.” He added, “I will do whatever it takes to maximize the pain against Americans.”
As of now, President Trump has not responded to the move by Canada.
