Ontario puts 25% increase on electricity exports to US in response to trade war

Ontario’s premier announced that effective from Monday his province is charging 25% more for electricity to 1.5 million Americans in response to US President Donald Trump’s trade war.

Ontario, Canada’s most populous province, provides electricity to Minnesota, New York and Michigan.

Quebec is also considering taking similar measures with electricity exports to the US.

“President Trump’s tariffs are a disaster for the US 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.”

Mr Ford’s office said the new market rules require any generator selling electricity to the US to add a 25% surcharge to the US.

Ontario’s government expects it to generate revenue of 300,000 Canadian dollars (£161,200) to 400,000 Canadian dollars (£214,675) per day, “which will be used to support Ontario workers, families and businesses”.

Mr Ford estimated it will add about 69 US dollars (£53.54) a month to the bills of each American affected.

“It needs to end. Until these tariffs are off the table, until the threat of tariffs is gone for good, Ontario will not relent,” Mr Ford said.

Mr Ford said Mr Trump changes his mind every day, but if he continues to attack Canada he will do everything it takes to maximise the pain.

“Republicans, at least the ones I speak to, do not agree with President Trump but they are too scared to go out there and say it publicly,” Mr Ford said.

“It’s a shame but we need to end this.”

The new surcharge is in addition to the federal government’s initial 30 billion Canadian dollars (£16.3 billion) worth of retaliatory tariffs have been applied on items such as American orange juice, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles and certain pulp and paper products.

Mr Trump launched a new trade war last week by imposing tariffs against Washington’s three biggest trading partners, drawing immediate retaliation from Mexico, Canada and China and sending financial markets into a tailspin.

Mr Trump later said he has postponed 25% tariffs on many goods from Canada and Mexico for a month, amid widespread fears of a broader trade war.