UPDATE: Ontario Premier Doug Ford released a joint statement on behalf of himself and United States Secretary of Commerce Howard Lutnick on X, which said in part that Ontario agreed to suspend its tax increase on electric exports.
You can find the full statement below:
"Today, United States Secretary of Commerce @howardlutnick and Premier of Ontario Doug Ford had a productive conversation about the economic relationship between the United States and Canada.
Secretary Lutnick agreed to officially meet with Premier Ford in Washington on Thursday, March 13 alongside the United States Trade Representative to discuss a renewed USMCA ahead of the April 2 reciprocal tariff deadline. In response, Ontario agreed to suspend its 25 per cent surcharge on exports of electricity to Michigan, New York and Minnesota."
ORIGINAL: Ontario's Premier, Doug Ford, has implemented a 25% export tax on electricity that Ontario sends to three U.S. States in response to President Donald Trump's tariffs on Canada.
The charge affects the electricity supplied to Minnesota, Michigan, and New York. The tax from Canada came despite Trump's recent pause on tariffs imposed on Canada.
Doug Ford stated that he would "not hesitate to increase this charge" further to retaliate against the U.S. and even threatened to "shut the electricity off completely."
On Tuesday, in response to the price increase on electricity sold to the U.S., President Donald Trump said he will double his planned tariffs on steel and aluminum from 25% to 50% for Canada. You can read more here.
John Howard, Interim Chair of the New York State Public Service Commission, explained the potential impact on Western New Yorkers, noting that the region is significantly dependent on Canadian electricity imports. Howard emphasized that the new tax could impact all New Yorkers, particularly those upstate, due to their integration with National Grid and NYMO. Howard warned that the impact could be felt as early as the next billing cycle, potentially hitting pocketbooks by March or April.
The tax comes at a time when the wholesale price of energy in the Northeast has already risen dramatically since last year, leading to higher bills for both natural gas and electricity.
As the new electricity charge takes effect, New Yorkers will likely experience higher energy costs, adding to existing financial pressures from rising energy prices in the region.
On Monday, United States Representative Nick Langworthy called the electricity tax "very unfortunate. Especially because president trump has paused tariffs imposed on Canada." he said. "We know that Canada is a key ally, and we trust they will aid us in our goal to stop the flow of fentanyl."
Congressman Tim Kennedy said this response to Trump's tariffs "will be felt by my constituents and residents across New York State. Hardworking families in western New York will immediately see the negative effects of Trump's reckless trade war with increased energy costs."
