Ontario slaps 25 per cent surcharge on electricity to U.S., warns it could go higher

TORONTO — Ontario has placed a surcharge of 25 per cent on electricity exported to the United States as of Monday, and the government says it could raise that amount even higher in response to further American escalation.

Premier Doug Ford has announced the price increase on the electricity the province sends to 1.5 million homes in three U.S. states as one of Ontario’s retaliatory measures against tariffs imposed on Canadian goods by President Donald Trump.

“Believe me when I say I do not want to do this,” Ford said Monday at a press conference.

“I feel terrible for the American people, because it’s not the American people who started this trade war. It’s one person who’s responsible, that’s President Trump.”

Ford said the surcharge will add an estimated $100 per month to the average bills of affected American ratepayers, and it will generate $300,000 to $400,000 in revenue for the province each day. Ontario will use that money to reduce electricity bills for ratepayers in the province, Ford said.

Speaking on PBS News Hour Monday evening, the premier said he’d prefer to create an American-Canadian fortress, and “be the strongest, most resilient, and richest safest two countries in the world.”

“I have talked to three governors. They understand the situation we’re in. We have to negotiate through strengths, not weakness,” Ford said.

The province has also taken American alcohol off Liquor Control Board of Ontario shelves and banned U.S. companies from government procurement contracts, in addition to the federal government’s initial round of retaliatory tariffs on $30 billion worth of American goods.

The electricity surcharge is being imposed by a directive from Energy Minister Stephen Lecce to the Independent Electricity System Operator, which will require any generator selling electricity to the U.S. to add what’s being called a Tariff Response Charge.

The IESO will then collect the money generated by the surcharge on behalf of the government on a monthly basis.

Ontario says it could increase or decrease the electricity surcharge amount at any time in response to actions by the U.S. government.

In a Truth Social post Monday night, Trump reacted to the surcharge by calling Canada a “tariff abuser,” reiterating that the U.S. doesn’t need Canada’s resources and “is not going to be subsidizing Canada any longer.”

“Because our Tariffs are reciprocal, we’ll just get it all back on April 2,” he said.

The premier has also threatened to shut off power completely to Minnesota, New York and Michigan if the tariffs remain.

Ford said Monday that could be achieved by reducing the amount of electricity generated by hydroelectric stations.

He urged other provinces – in particular Alberta, which sends about four million barrels of oil per day to the United States – to look at leveraging their energy resources.

“A message to Premier (Danielle) Smith: one day, I think you might have to use that trump card and give approval for an export tax,” he said.

“You want to talk about a trump card? That will instantly change the game, instantly, when the Americans – and I know the Americans – all of a sudden their gas prices go up 90 (cents) to $1 a gallon, they will lose their minds. So we need to at least put that in the window.”

Smith quickly shot that down.

“Alberta will never agree to such an absurd and self destructive idea,” she wrote in a post on social media.

“It’s not an option. I’m not going to agree to do something that will cost hundreds of thousands of Albertans (and Canadians) their jobs almost overnight. That would be like placing export tariffs on Ontario auto parts. Also a bad idea.”

This report by The Canadian Press was first published March 10, 2025.

Allison Jones, The Canadian Press