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Removed Ontario Threatens 25% Electricity Surcharge on US Exports (Withdrawn)

Category: âš¡Energy
Scope: Provincial Policy
Origin: Ontario, Canada
Target: US
Response to: US Threatens 50% Tariffs on Canadian Metals (Withdrawn)

Effective: TBD

Est. Cost: ~120 million Canadian dollars annually in new revenue from U.S. electricity imports

Impacted Jobs: 300 - Ontario energy sector sees minor employment gains from increased domestic sourcing

Description:

Ontario's threatened 25% surcharge on electricity exports to the United States. On March 11, 2025, Premier Doug Ford warned he would levy this surcharge on power sent to over 1 million U.S. homes (e.g. in NY, MI, MN) unless all U.S. tariffs against Canada were dropped. The plan was suspended after President Trump reversed the 50% metal tariff hike later that day.
Impacts:
  • U.S. electricity imports to Ontario face new surcharge
  • Ontario utilities may pass on costs or shift to domestic sources
  • Cross-border power trade becomes less competitive
Analysis:

Ontario’s electricity surcharge introduces targeted friction in a key cross-border commodity. It nudges procurement toward Canadian sources without banning imports outright. The measure is economically modest but symbolically significant, signaling long-term realignment of energy trade flows.

Sources: