Canada’s most populous province, Ontario is slapping a retaliatory 25% surcharge on electricity it sends to US states in response to President Donald Trump’s tariffs on Canadian goods.
Ontario leader Doug Ford confirmed the move in a news conference on Monday morning, saying it will increase costs about $10 (£7.75) per megawatt-hour for US customers.
Roughly 1.5 million American homes in the northern border states of New York, Michigan, and Minnesota will be impacted.
Ford said that the energy surcharge will remain until the threat of tariffs from the US “is gone for good.”
“President Trump’s tariffs are a disaster for the U.S. economy. They’re making life more expensive for American families and businesses,” Ford said in a statement on Monday.
He added that Ontario will be using the revenue from its retaliatory tariffs on energy to support local workers and businesses impacted by US tariffs on Canada.
Canada’s federal government has also imposed its dollar-for-dollar reciprocal tariffs on $30bn worth of US goods exported north. The list of products impacted ranges from clothing to perfume to orange juice.
President Trump has repeatedly threatened Canada with a blanket 25% tariff on all Canadian exports to the US, a move that economists have warned could result in job losses in Canada while increasing prices for Americans.
The US has threatened similar tariffs on neighbouring Mexico as well.
Last week, Trump imposed the levies but quickly reversed course, saying he would temporarily spare carmakers from tariffs until 2 April.
