Ontario to implement 25% tariff on electricity exports, despite US delay

Ontario is moving forward with plans to place a 25% tariff on electricity exports to Michigan, New York and Minnesota on March 10, despite US President Donald Trump's decision to delay tariffs on imports from Canada and Mexico.

"We are going to put a 25% tariff on electricity coming from Ontario to Michigan, New York and Minnesota," Ontario Premier Doug Ford said during a March 6 interview with Fox Business. "Isn't this a shame? It is an absolute mess [Trump] has created."

Trump on March 6 announced a delay for tariffs on US imports from Canada and Mexico until April 2. Trump had already delayed the tariffs by a month after initially signaling they would take effect in early February.

"He said he's going to postpone the tariffs," Ford said. "Well, he said that before and two days later changed."

Trump has argued the tariffs are necessary to curb the movement of fentanyl. The US seized 43 pounds of fentanyl at the northern border during fiscal year 2024, representing just 0.2% of the total amount of fentanyl seized in the full year, according to data from US Customs and Border Protection.

Province largest power exporter in 202

Ontario was Canada's largest exporter of power in 2024, sending 12.6 TWh to 11 US states, according to the Canada Energy Regulator.

The province sent 6.75 TWh to New York and 4.59 TWh to Michigan. Minnesota received 260 GWh, mostly from Ontario.

"If we have to, we won't hesitate to increase the charge or shut the electricity off completely," Ford said in a March 4 social media post.

NYISO disputes tariff on power

Minnesota Governor Tim Walz met with Ford to discuss ways to lessen the impact of tariffs, according to a news release. Walz warned the tariffs on electricity would have a negative impact on industrial customers in the Northeastern part of Minnesota.

The New York ISO declined to provide further comment on Ford's plan to continue with the tariffs. In a Feb. 28 filing with the Federal Energy Regulatory Commission, the grid operator said it believed Trump's tariffs did not apply to imports of Canadian electricity and that it had no role in collecting any duties on Canadian electricity imports.

"One of our most significant concerns remains the stability of the electric grid," Michigan Public Service Commission spokesperson Matt Helms told Platts, a part of S&P Global Commodity Insights. "While Michigan utilities don't directly purchase electricity generated in Canada, there are significant flows across the border because of the interconnected grids between the two countries."

Beyond reliability concerns, Helms said the tariffs are expected to raise the costs of electricity, propane and other heating fuels, and gasoline. Helms said the state is still assessing the full scope of the potential impacts.