(Update 5 am Wednesday) Premier Doug Ford has suspended the 25% surcharge he imposed on electricity shipments to the United States. This after he says American Commerce Secretary Howard Lutnick extended an olive branch to meet in Washington to discuss trade. President Donald Trump’s tariffs on Canadian steel and aluminum still came into effect Wednesday, but at 25% not the 50% he threatened after Ford announced the energy surcharge.
Ontario is moving ahead with a 25% surcharge on energy heading south of the border.
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% 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.
