TORONTO — Ontario's premier, the leader of Canada’s most populous province, announced that effective Monday his province is charging 25% more for electricity to 1.5 million Americans in response to U.S. President Donald Trump's trade war.
Ontario provides electricity to Minnesota, New York and Michigan.
“President Trump’s tariffs are a disaster for the U.S. economy. They’re making life more expensive for American families and businesses," Ontario Premier Doug Ford said in a statement. “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.â€
Ontario Premier Doug Ford holds a news conference regarding the new tariffs that the United States has placed on Canada, at Queen's Park in Toronto on Tuesday, March 4, 2025.
Ford has said Ontario’s tariff would remain in place despite the one-month reprieve from Trump, noting a one month pause means nothing but more uncertainty.
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Ford's office said the new market rules require any generator selling electricity to the U.S. to add a 25% surcharge to the U.S. Ontario's government expects it to generate revenue of $300,000 to $400,000 Canadian, roughly $208,000 to $277,000 in U.S. dollars per day, “which will be used to support Ontario workers, families and businesses.â€
The new surcharge is in addition to the federal government's initial $30 billion Canadian (US $21 billion) worth of retaliatory tariffs have been applied on items like American orange juice, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles and certain pulp and paper products.
Trump last week by imposing tariffs against Washington’s three biggest trading partners, drawing immediate retaliation from , Canada and and sending financial markets into a tailspin.
Trump later said he has postponed 25% tariffs on many goods from Canada and Mexico for a month, amid widespread fears of a .
Canada's Liberal Party elected former central banker Mark Carney to replace Prime Minister Justin Trudeau amid a tariff war with the U.S.
President Trump refused to rule out the possibility that his economic policies, including aggressive tariffs, could lead to a recession. In an interview with Fox ÃÛèÖÖ±²¥, he acknowledged a “period of transition†but insisted that his policies would ultimately benefit the economy. The administration recently imposed sweeping tariffs on Canada, Mexico, and China, prompting immediate retaliatory measures. Trump’s tariffs have shaken markets and drawn criticism from industries such as automakers, who warn of severe financial consequences. Some economists and banks, including JP Morgan and Goldman Sachs, have increased their recession forecasts in response to the uncertainty. Commerce Secretary Howard Lutnick dismissed concerns, stating that tariffs would help the economy grow and insisting that a recession was unlikely. Lutnick argued that domestic goods would become cheaper, offsetting the higher cost of foreign imports. However, economists warn that tariffs could enable American companies to raise prices rather than lower them. Austan D. Goolsbee, president of the Chicago Fed, noted that uncertainty over trade policy was already affecting businesses. Despite concerns, Trump defended his approach, saying his policies were “bringing wealth back to Americaâ€.
Trump has doubled down on his support for tariffs, calling them the "greatest thing" America has ever done. Speaking aboard Air Force One, Trump claimed that tariffs will "make the U.S. rich again" while auto companies are opening new plants due to his policies. However, he refused to rule out a potential recession when pressed in a Fox ÃÛèÖÖ±²¥ interview. The remarks come as the U.S. imposes steep new tariffs on Chinese, Canadian, and Mexican imports, while Beijing retaliates with fresh taxes on American agricultural goods#TrumpTariffs #TradeWar #ChinaTariffs #CanadaTariffs #TrumpVsChina #USMexicoTrade #TariffWar #TrumpEconomy #USCanadaTrade #TariffsDebate #GlobalTrade #TrumpTradePolicy #ChinaUSConflict #EconomicImpact #Tariffs
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