Ontario threatens 25% surcharge on energy exported to Michigan, Minnesota, New York
Ontario's leadership threatened an additional surcharge for electricity they export to Michigan, Minnesota and New York in response to tariffs implemented by President Trump.
In a statement posted on X Tuesday, Doug Ford, the premier of Ontario, said "I won't hesitate to increase this surcharge or, if necessary, shut the electricity off completely."
"Ontario and Canada are America's largest customer and export destination. Unfortunately, we have been left with no choice but to respond with our own tariffs and charges that will make life more expensive for Americans at a time when the cost of living is at an all-time high," Ford added.
On Thursday, Mr. Trump announced that he would pause the 25% tariffs on U.S. imports from Mexico and Canada that are covered under a 2020 trade agreement. The president signed two executive orders stating the exemptions would apply to U.S. imports of products from both Mexico and Canada that are covered by the USMCA. Goods that are not covered by the agreement remain subject to tariffs.
Energy commissioner says Michigan doesn't necessarily use electricity from Canada
Dan Scripps, the chair of the Michigan Public Service Commission, said Michigan gets a lot of electricity from Canada but doesn't actually use it. Ontario threatened an additional surcharge on New York and Minnesota.
"I wouldn't expect the lights to go off tomorrow certainly," Scripps said. "There's a lot of electricity that flows across the border, but almost none of it stays in Michigan."
Michigan is part of a system that moves electricity around our neighboring states, called the Lake Erie Loop Flow.
"So it goes into Michigan and immediately goes out of Michigan, into to Ohio, and then goes eastward and then re-enters Canada, actually again at Niagara," Scripps said.
The vast majority of the electricity Michiganders use is actually produced in Michigan, Scripps said.
"The much larger issue for us is actually on petroleum and propane and heating fuels," he said. "I think those tariffs could ultimately have an impact on both the prices that we pay at the pump and the prices that we pay for heating our homes."
Scripps said that even a Canadian electric shutoff might reduce some of Michigan's electric grid resilience, but it wouldn't mean a blackout. He said these back-and-forth tariffs are simply a tit-for-tat situation.
"It's been said that nobody wins in a trade war," Scripps said. "I think this is maybe a classic case of that."
