Ontario suspends 25% electricity export surcharge to US states

Published 11/03/2025, 20:02
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect

Investing.com -- Ontario has put a halt to its 25% surcharge on electricity exports to Michigan, New York, and Minnesota, according to a statement by Ontario Premier Doug Ford. This decision comes after US Commerce Secretary Howard Lutnick agreed to meet with Ford in Washington on Thursday to discuss a renewed USMCA ahead of the April 2 reciprocal tariff deadline.

Previously, Ontario had imposed a surcharge of C$10 ($7) per megawatt hour on electricity it sells to the US. This was in response to broad tariffs, including on Canadian steel and aluminum, that President Donald Trump placed on Canada on March 4. Trump had also announced plans to double these tariffs to 50% and declare a national emergency on electricity for the three states affected by Ontario’s surcharge.

The Ontario Premier had previously stated that he was willing to cut off electricity exports to the US as a way to send a message to the White House. Despite not wanting a trade war, Ford had stood firm on the additional fee unless the US president reversed his trade actions against Canada. "I want to send more electricity" to the US, Ford said in an interview with CNBC, describing the potential cut-off of power exports as "a tool in our toolkit."

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