Canada’s province of Ontario will slap a 25% export tax on electricity it sends to 1.5 million homes in Minnesota, Michigan and New York, in retaliation for President Trump’s tariffs

"If these tariffs continue—if the Trump administration imposes any further duties—we will immediately apply a 25% surcharge on the electricity we export," Ontario Premier Doug Ford told reporters at the provincial legislature. "And we won’t hesitate to cut off their power entirely if necessary."

The measure is a direct response to U.S. President Donald Trump’s 25% tariffs on most Canadian imports, which took effect earlier on Tuesday.

The Wall Street Journal first reported on Ontario’s proposed electricity export tariff.

Ontario’s Retaliation Measures

Beyond the power surcharge, Ford’s government has also:

  • Banned U.S.-based companies from securing government contracts.
  • Canceled Ontario’s contract with Starlink, the satellite network owned by Elon Musk. “It’s done. It’s gone,” Ford said.
  • Threatened to cut off nickel exports to the U.S., a move Ford said would cripple American manufacturing. "Fifty percent of the nickel you use comes from Ontario," he told NBC News on Monday.

Canada’s National Response

On Tuesday, Canada launched its own counter-tariffs, starting with 25% duties on $30 billion worth of U.S. goods. A second round—targeting $125 billion in additional products—will follow in three weeks, covering major sectors like automobiles, steel, and aluminum.

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