Ontario Applies Twenty-five Percent Surcharge on Electricity Exports to United States

Beamsville – Effective today, the Ontario government has applied a twenty-five percent surcharge on all electricity exports to the United States as part of the province’s initial suite of retaliatory measures to American tariffs on Canada. This surcharge will affect 1.5 million homes and businesses in Michigan, Minnesota and New York, costing up to $400,000 every day the surcharge remains in place.

“We did not want a trade war with the United States, but we cannot stand by while Ontario job creators and workers are at risk from punishing American tariffs,” said Sam Oosterhoff, MPP-Elect for Niagara West.

“In a border community like Niagara, it is more important than ever to protect Ontario jobs and future prosperity of the entire province.”

“President Trump’s tariffs are a disaster for the American economy. They are making life more expensive for American families and businesses,” said Hon. Doug Ford, Premier of Ontario.

“Until the threat of tariffs is gone for good, Ontario will not back down. We will stand strong, use every tool in our toolkit and do whatever it takes to protect Ontario.”

Starting today, new market rules are in effect that require any generator selling electricity to the United States to add a twenty-five percent surcharge valued at $10 per megawatt-hour to the cost of power. At this level, the surcharge will generate revenue of $300,000 to $400,000 per day, which will be used to support Ontario workers, families and businesses.

The government will use every tool at its disposal to protect Ontario workers and families from President Trump’s tariffs, including increasing this surcharge at any time or, if the United States escalates, cutting off electricity exports to the United States completely.

“For decades, Ontario has powered American homes, factories, offices and jobs, and we will not stand by as our vital electricity exports are taken for granted,” said Hon. Stephen Lecce, Minister of Energy and Electrification.

“In a time where prices are going up for families in America, Canada and the United States should be working together to strengthen our trade and investment relationships to ensure a prosperous future for both sides of the border.”

The new surcharge is in addition to the Government of Canada imposing an initial round of $30 billion in retaliatory tariffs. In Ontario, the Liquor Control Board of Ontario, the largest buyer of alcohol in the world, has removed all United States products from its shelves, costing American producers $1 billion in lost revenue. Ontario has also banned American companies from participating in an estimated $30 billion worth of annual government procurement.