Ontario Hits Back at Trump’s Trade War with 25% Electricity Surcharge

Ontario has fired back against Donald Trump’s latest round of trade threats by slapping a 25 per cent surcharge on all electricity exports to the United States, a move that could cost American homes and businesses up to $400,000 every day. Premier Doug Ford’s government made it clear: until Trump’s tariffs are gone for good, Ontario will not back down.

Trump’s aggressive tariff policies have been destabilizing trade since his first term, with Canada frequently caught in the crossfire of his economic brinkmanship. Now, with his administration once again resorting to heavy-handed trade barriers, Ontario is making it clear that it won’t stand idly by while Canadian industries take the hit.

Ontario’s Retaliation: Making the U.S. Pay

Effective immediately, the new surcharge requires any electricity generator exporting to the U.S. to add $10 per megawatt-hour (MWh) to the cost of power. With electricity flowing into Michigan, Minnesota, and New York, the impact will be felt across 1.5 million homes and businesses. The revenue collected—between $300,000 and $400,000 per day—will be redirected to Ontario’s workers, families, and businesses.

“President Trump’s tariffs are a disaster for the U.S. economy. They’re making life more expensive for American families and businesses,” said Premier Ford. “Until the threat of tariffs is gone for good, Ontario won’t back down.”

Beyond the electricity surcharge, Ontario has implemented other retaliatory measures, including:

• The LCBO banning all U.S. alcohol products, stripping American producers of $1 billion in sales.
• Blocking U.S. companies from bidding on Ontario government contracts, worth an estimated $30 billion annually.
• Supporting the federal government’s move to impose $30 billion in retaliatory tariffs on American goods.

Trump’s Dangerous Game of Economic Chicken

Donald Trump has a long history of using threats and tariffs as weapons in trade negotiations, often ignoring the economic damage to both sides of the border. His strategy has pushed trade partners into defensive positions, forcing them to take retaliatory measures like Ontario’s electricity surcharge. But instead of securing better deals for Americans, his trade war tactics have only led to higher costs, job losses, and economic uncertainty.

“For decades, Ontario has powered American homes, factories, offices, and jobs,” said Ontario’s Minister of Energy and Electrification, Stephen Lecce. “We will not stand by as our vital electricity exports are taken for granted.”

The Ford government has also made it clear that the surcharge is just the beginning. If Trump escalates, Ontario could cut off electricity exports to the U.S. completely, a move that would send shockwaves through border states that rely on Canadian power to keep their grids stable.

Will Trump’s Recklessness Backfire?

Trump’s reckless tariff policies are already making life more expensive for Americans, and Ontario’s countermeasures will only add to the pressure. If the past is any indication, Trump’s economic bullying is likely to backfire, as businesses and consumers bear the cost of his political gamesmanship.

At a time when economic cooperation is crucial, Trump’s trade war tactics continue to drive a wedge between longtime allies. Ontario’s firm response is a reminder that Canada will not be pushed around—especially not by a leader who has spent years playing a dangerous game of threats and economic brinkmanship.