Ontario Enacts 25% Surcharge on Electricity Exports Amid Trump’s Tariff Controversy - PRESS AI WORLD
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Ontario Enacts 25% Surcharge on Electricity Exports Amid Trump’s Tariff Controversy

Credited from: INDIATIMES

<p><strong>Key points:</strong></p> <ul> <li>Ontario has officially implemented a 25% surcharge on electricity exports to the U.S., starting on March 10.</li> <li>This surcharge primarily affects consumers in New York, Michigan, and Minnesota, adding approximately $400,000 CAD daily to electricity costs for 1.5 million U.S. homes and businesses.</li> <li>Premier Doug Ford criticized U.S. tariffs under President Trump, stating they significantly increase costs for American families and businesses.</li> </ul> <p>The Canadian province of <strong>Ontario</strong> has introduced a substantial <strong>25% surcharge</strong> on all electricity exports to the United States, a decisive retaliatory measure against the recent trade tariffs imposed by <strong>U.S. President Donald Trump</strong>. Effective from March 10, this new surcharge comes as Ontario grapples with escalating tensions in trade relations, especially targeting states that receive significant power supplies from Ontario—namely <strong>New York</strong>, <strong>Michigan</strong>, and <strong>Minnesota</strong>.</p> <p>Premier <strong>Doug Ford</strong> announced the surcharge during a press conference, emphasizing that the tariffs placed by Trump represent a "disaster for the U.S. economy," which ultimately leads to increased living costs for American families and businesses. He stated, “Until the threat of tariffs is gone for good, Ontario won't back down. We'll stand strong, use every tool in our toolkit and do whatever it takes to protect Ontario.” Furthermore, the implementation of this additional fee is expected to generate between <strong>$300,000 and $400,000 CAD</strong> (approximately <strong>$276,000 to $432,000 USD</strong>) daily, which will be utilized to support local workers and businesses facing the impacts of U.S. tariffs.</p> <p>Ford detailed how the surcharge requires any generator selling electricity to the U.S. to add an additional <strong>$10 per megawatt-hour</strong> to the cost of power. This decision directly affects around 1.5 million households and businesses across the border, who may now see an increase of around <strong>$100 CAD</strong> (about <strong>$69 USD</strong>) added to their monthly energy bills.</p> <p>This retaliatory tariff comes as the Trump administration continues to impose tariffs on Canadian goods, with some tariffs on Mexican and Canadian imports recently being postponed for one month—but Ford remains unconvinced that such gestures alter the underlying issues. He noted that despite this temporary relief, a solitary month of tariff pauses does nothing to alleviate continuous uncertainties surrounding the bilateral trade relationship.</p> <p>The imposition of this surcharge also reflects broader economic repercussions, as financial markets show signs of instability amidst fears of escalating trade wars. The <a href="http://reuters.com/business/energy/ontario-imposes-25-surcharge-electricity-exports-us-2025-03-10/" target="_blank">Reuters</a> report highlighted the potential for significant impacts on electricity pricing in those areas that rely heavily on Canadian electricity imports.</p> <p>While tensions continue to rise, Ford has made it clear that his government will respond decisively to any further economic aggression from the U.S. administration. "I will not hesitate to increase this charge," he remarked, indicating his readiness to protect provincial interests vigorously.</p>

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