Ontario premier maintains electricity tariffs despite Trump reversing trade stance
The action taken in response to President Donald Trump's tariffs on Canadian goods may increase expenses for 1.5 million customers across three border states.
TroibNews 
Ontario Premier Doug Ford is moving forward with his commitment to implement 25 percent tariffs on electricity exported to the United States starting Monday, despite President Donald Trump’s recent decision to suspend most tariffs on Mexico and Canada announced Thursday afternoon.
This decision marks an intensification of trade tensions between the two nations, following Trump’s history of fluctuating threats regarding tariffs on Canada, the U.S.'s largest energy trading partner.
“We’re going to put a 25 percent tariff on electricity coming from Ontario to Michigan, New York and Minnesota,” Ford stated to Fox Business News when asked if he would reconsider the tariff amid Trump’s policy changes. “And isn’t this a shame? It’s an absolute mess he’s created.”
Officials from the states affected by these tariffs express concerns that this action could result in increased costs and jeopardize grid stability for the 1.5 million consumers in Minnesota, Michigan, and New York who rely on power from Ontario.
During a CNN interview earlier that day, Ford expressed regret over his decision but felt it was unavoidable. “And honestly, it really bothers me we have to do this,” he remarked in that interview. “I don’t want to do this. I want to send more electricity, more critical minerals, more oil. That’s what we want to do.”
Although Canada’s hydropower exports to the U.S. represent only a small fraction of the nation's overall electricity generation, experts underscore the importance of the interconnected grid between the two countries for maintaining system reliability. The premier of Quebec had indicated to PMG that the province would also consider imposing tariffs on its electricity exports to New England.
Border state officials have voiced worries about how these tariffs could affect customer costs and the stability of the power grid.
“The United States and Canada share one of the most integrated international electric grids in the world, allowing system operators in both countries to pool resources for reliable and economic electric supply,” read a statement from the New York Independent System Operator (NYISO) dated Feb. 28, which addressed the potential impact of the tariffs.
The statement further noted, “The NYISO and neighboring system operators have serious concerns that applying export tariffs to electricity may have serious adverse effects on reliability and wholesale electric markets.”
NYISO has yet to provide a response regarding Ford’s tariff announcement.
Matt Helms, a spokesperson for Michigan’s utility regulator, previously highlighted potential reliability disruptions to the power grid as one of the agency’s “most significant concerns” relating to retaliatory tariffs.
Helms indicated that the Public Service Commission had no additional comments on the latest tariff measures.
Furthermore, the Minnesota Commerce Department issued a statement this week criticizing the “manmade crisis” resulting from the proposed tariffs. “We are confident that we will be able to keep the lights on for Minnesotans, but potentially at a much higher cost for energy bills,” the statement asserted.
When asked for a comment on Thursday, a spokesperson for the department reiterated that its stance remains unchanged.
Mark B Thomas contributed to this report for TROIB News
This decision marks an intensification of trade tensions between the two nations, following Trump’s history of fluctuating threats regarding tariffs on Canada, the U.S.'s largest energy trading partner.
“We’re going to put a 25 percent tariff on electricity coming from Ontario to Michigan, New York and Minnesota,” Ford stated to Fox Business News when asked if he would reconsider the tariff amid Trump’s policy changes. “And isn’t this a shame? It’s an absolute mess he’s created.”
Officials from the states affected by these tariffs express concerns that this action could result in increased costs and jeopardize grid stability for the 1.5 million consumers in Minnesota, Michigan, and New York who rely on power from Ontario.
During a CNN interview earlier that day, Ford expressed regret over his decision but felt it was unavoidable. “And honestly, it really bothers me we have to do this,” he remarked in that interview. “I don’t want to do this. I want to send more electricity, more critical minerals, more oil. That’s what we want to do.”
Although Canada’s hydropower exports to the U.S. represent only a small fraction of the nation's overall electricity generation, experts underscore the importance of the interconnected grid between the two countries for maintaining system reliability. The premier of Quebec had indicated to PMG that the province would also consider imposing tariffs on its electricity exports to New England.
Border state officials have voiced worries about how these tariffs could affect customer costs and the stability of the power grid.
“The United States and Canada share one of the most integrated international electric grids in the world, allowing system operators in both countries to pool resources for reliable and economic electric supply,” read a statement from the New York Independent System Operator (NYISO) dated Feb. 28, which addressed the potential impact of the tariffs.
The statement further noted, “The NYISO and neighboring system operators have serious concerns that applying export tariffs to electricity may have serious adverse effects on reliability and wholesale electric markets.”
NYISO has yet to provide a response regarding Ford’s tariff announcement.
Matt Helms, a spokesperson for Michigan’s utility regulator, previously highlighted potential reliability disruptions to the power grid as one of the agency’s “most significant concerns” relating to retaliatory tariffs.
Helms indicated that the Public Service Commission had no additional comments on the latest tariff measures.
Furthermore, the Minnesota Commerce Department issued a statement this week criticizing the “manmade crisis” resulting from the proposed tariffs. “We are confident that we will be able to keep the lights on for Minnesotans, but potentially at a much higher cost for energy bills,” the statement asserted.
When asked for a comment on Thursday, a spokesperson for the department reiterated that its stance remains unchanged.
Mark B Thomas contributed to this report for TROIB News
