Canada Hits Back at U.S. Trade War with Electricity Surcharge

Canada’s Ontario’s government is taking strong action against U.S. President Donald Trump’s trade war by imposing a 25% surcharge on electricity exports to the United States. The new charge, effective Monday, will impact 1.5 million Americans in states that rely on Ontario’s power, including New York, Michigan, and Minnesota.

Premier Doug Ford made the announcement in Toronto, emphasizing that Ontario will not hesitate to take even tougher measures if the U.S. escalates its trade actions.

> “If the U.S. increases its attacks on Canada, we won’t hesitate to shut off electricity completely,” Ford warned.

He made it clear that the surcharge will stay in place, even though Trump has temporarily paused some of his tariffs for a month. Quebec is also considering similar steps against the U.S.

Canada Retaliates as Trade War Escalates

The Ontario government expects to generate between CA$300,000 ($208,000 USD) and CA$400,000 ($277,000 USD) per day from the new electricity surcharge. This revenue will be used to support Ontario workers, businesses, and families affected by the trade war.

The move comes as part of Canada’s broader retaliation, which already includes CA$30 billion ($21 billion USD) in tariffs on U.S. products such as orange juice, peanut butter, coffee, motorcycles, footwear, cosmetics, and paper goods.

Trump recently imposed tariffs on Canada, Mexico, and China, sparking global economic uncertainty and market turmoil. Although he announced a temporary one-month exemption for some Canadian and Mexican products, Ford dismissed it as a short-term distraction that does not fix the larger problem.

Ford estimated that Ontario’s new electricity surcharge will add about CA$100 ($69 USD) per month to affected American households.

> “Until the threat of tariffs is completely gone, Ontario will not back down,” he declared.

Ford: “We Will Maximize the Pain on the U.S.”

Premier Ford blamed Trump alone for the trade war and the hardships facing both Canadians and Americans. He also claimed that many Republicans in the U.S. disagree with Trump but are too afraid to speak out.

> “Republicans tell me privately that they oppose Trump’s actions, but they won’t say it publicly. That’s a shame. This has to stop,” Ford said.

The Ontario government is also closely watching Trump’s next moves on Canadian steel, aluminum, and dairy, as the U.S. president has threatened additional tariffs on these industries.

> “If Trump keeps attacking Canada, we will do everything in our power to hit back harder,” Ford warned.

U.S. Automakers in the Middle of the Fight

The trade tensions are especially concerning for Ontario’s auto industry, which is the heart of Canada’s car production. Trump has urged Ford, General Motors, and Stellantis to move production out of Canada and Mexico to the U.S.

Last week, after discussions with automakers, Trump granted a one-month exemption on 25% tariffs for vehicles and auto parts under the U.S.-Mexico-Canada Agreement (USMCA). However, Ford believes this is just a temporary band-aid solution.

U.S. Dependence on Canadian Energy

Ontario’s Minister of Energy and Electrification, Stephen Lecce, pointed out that the U.S. relies heavily on Canadian electricity, and this new surcharge could have a ripple effect beyond the three affected states.

> “New York, Minnesota, and Michigan aren’t the only ones impacted. They often resell Ontario’s power to other states,” Lecce explained.

Similarly, Canada supplies about 60% of U.S. crude oil imports, and 85% of imported electricity in America comes from Canada.

Ford Calls for a Canadian Oil Export Tax

The trade war has fueled growing anti-U.S. sentiment in Canada. Some Canadians are boycotting American products, canceling trips to the U.S., and even booing the American national anthem at NHL and NBA games.

Ford believes that Alberta—Canada’s largest oil-producing province—should impose an export tax on oil to further pressure the U.S.

> “If Alberta put a tax on oil exports, that would instantly change the game,” Ford said. “If gas prices in the U.S. suddenly jumped by $1 per gallon, Americans would lose their minds.”

Trump has claimed that the U.S. doesn’t need Canadian energy, but the reality is very different. Canada is the largest foreign supplier of steel, aluminum, and uranium to the U.S. and possesses 34 critical minerals that the Pentagon considers essential for national security.

Every day, nearly CA$3.6 billion ($2.7 billion USD) worth of goods and services cross the U.S.-Canada border.

Canada’s Tough Stance on Trump’s Trade War

The Ontario government’s electricity surcharge is just the beginning, as Canada continues to push back against Trump’s tariffs. While tensions remain high, Ford has made it clear that Ontario will not hesitate to take even more aggressive action if necessary.

The ball is now in Trump’s court—will he escalate the trade war, or will the U.S. and Canada find a way to de-escalate the growing economic battle?

Trump Says Canada Should Become the 51st U.S. State to Eliminate Tariffs

President Donald Trump says U.S. is imposing a 50% tariff on Canadian steel and aluminum starting March 12 in response to Ontario’s 25% electricity tariff on exports to the U.S. Canada is also urged to remove high tariffs (250%-390%) on U.S. dairy products. A National Emergency on Electricity will be declared to counter Canada’s alleged threat. If Canada does not drop other tariffs, the U.S. will raise tariffs on Canadian cars on April 2, potentially crippling Canada’s auto industry. The U.S. also claims it subsidizes Canada’s national security by $200 billion annually. As a solution, Canada is encouraged to become the 51st U.S. state, which would eliminate tariffs, lower taxes for Canadians, and strengthen both nations.

Update (March 12, 2025)

Canada will impose C$29.8 billion in retaliatory tariffs on the United States on Wednesday in response to U.S. President Donald Trump’s steel and aluminum tariffs, according to a Canadian official.: Reuters.