TORONTO — Ontario's surcharge of 25 per cent on electricity exported to the United States goes into effect today, 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.
Ontario estimates that the surcharge will generate $300,000 to $400,000 in revenue for the province each day.
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.
Ontario says it could increase or decrease the electricity surcharge amount at any time in response to actions by the U.S. government.
The premier has also threatened to shut off power completely to Minnesota, New York and Michigan if the tariffs remain.
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.
This report by The Canadian Press was first published March 10, 2025.
Allison Jones, The Canadian Press