Ontario Premier Doug Ford’s power play to move ahead with a 25 per cent surcharge on energy heading south of the border has prompted U.S. President Donald Trump to double down on tariffs against Canadian steel and aluminum exports.
In a social media Tuesday, Trump says tariffs on metals will ratchet up to 50 per cent starting Wednesday, unless the province removes the tax slapped on provincial electricity exports.
The president also called the current trade situation between Canada and the U.S. everything from egregious to abusive.
On Monday, Premier Ford followed through on threats of a 25 per cent tax on electricity exported from Ontario to several northeast U.S. states.
Premier Doug Ford says it’s time for the chaos and uncertainty around tariffs to end.
“President Trump’s tariffs are a disaster for the U.S. economy. They’re making life more expensive for American families and businesses,” says Ford.
“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.”
He says new market rules are now in effect that require any generator selling electricity to Michigan, Minnesota and New York to add a 25 per cent surcharge.
It affects 1.5 million homes and businesses in those states.
Stephen Lecce, Minister of Energy and Electrification says the surcharge will generate hundreds of thousand dollars of revenue a day for Ontario.
“When we sell them power, on the spot market, we’re estimating $300,000 to $400,000 every single day of additional moneys that we’re going to accrue in an account that the government is committing to putting back in the pockets of ratepayers to reduce bills for families and businesses,” he says.
The Premier adds if the U.S. escalates the situation he won’t hesitate from cutting off the power altogether.
Watch this space.
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