Ontario officially hits U.S. with 25% electricity tax amid trade war [Video]

The Ontario government has officially applied a 25 per cent surcharge on all electricity exports to three U.S. states.

The additional tax, effective on Monday, will affect 1.5 million homes and businesses in Michigan, Minnesota and New York — costing up to $400,000 per day, the government said.

The move is part of Ontario’s initial suite of retaliatory measures against U.S. President Donald Trump’s tariffs on Canadian goods.

“President Trump’s tariffs are a disaster for the U.S. economy. They’re making life more expensive for American families and businesses,” Premier Doug Ford said in a statement Monday.

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

New market rules will require any generator selling electricity to the U.S. to add a 25 per cent surcharge valued at $10 per megawatt-hour to the cost of power.

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