Canada: Ontario to slap 25% export tax on electricity supplies to US amid Trump’s tariffs

Ontario, a Canadian province bordering the United States, has announced plans to impose a 25 per cent export tax on the electricity it supplies to three US states if President Donald Trump’s administration continues to impose sweeping tariffs on Canadian goods.

CTV News reports that Ontario Premier Doug Ford made this statement during a news conference on Tuesday.

This announcement follows the commencement of a 25 per cent import tariff imposed by the United States on Canada, Mexico, and China, which has sparked a trade war.

Reacting to the development, Ford stated that the export tax would apply to electricity that Ontario supplies to 1.5 million homes and businesses in New York, Michigan, and Minnesota. It is not yet clear when the tax will take effect.

He added that he would write to every senator, congressman, and congresswoman, warning that if the 25 per cent import tariff remains in place, Ontario would immediately introduce a 25 per cent surcharge on electricity exports.

“Today I am writing to every senator, every congressman and congresswoman, and the governors of New York, Michigan, and Minnesota, telling them that if these tariffs persist and if the Trump administration follows through on any more tariffs, we will immediately implement a 25 per cent surcharge on the electricity we export,” Ford said. “We will not hesitate to shut off their power as well.”