Ontario Suspends 25 Per Cent Surcharge on Electricity Exports to United States
March 11, 2025
The Ontario government announced a 25% surcharge on energy exports to the United States in response to tarrifs imposed by the U.S. on March 10. A day later that surcharge has been suspended, following a threat from the U.S. president to impose 50% tariffs on steel and aluminum, as well as an ‘olive branch’ from U.S. Secretary of Commerce Howard Lutnick.
Premier Doug Ford announced on social media that Lutnick agreed to meet along with United States Trade Representitive on March 13th, “to discuss a renewed USMCA ahead of the April 2 reciprocal tariff deadline.”
The 25 per cent surcharge on all electricity exports to the United States would 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.
“President Trump’s tariffs are a disaster for the U.S. economy. They’re making life more expensive for American families and businesses,” said Premier Doug Ford said in the initial press release on the surcharge. “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.”
Quick Facts
- Ontario currently exports electricity generated across the province directly to Michigan, New York and Minnesota.
- Between 2021 and 2023, Ontario exported 14.6, 14.2 and 12.0 terawatt hours of electricity to the United States.
- Ontario has 26 transmission connections with neighbouring jurisdictions: 11 with Quebec, three with Manitoba, one with Minnesota, four with Michigan and seven with New York.
