Barrie 
Ontario has imposed a 25% surcharge on electricity exports to the United States, effective immediately, in response to U.S. tariffs on Canadian goods.
This measure is expected to generate between $300,000 and $400,000 per day for the province and will impact approximately 1.5 million homes and businesses in Michigan, Minnesota, and New York.
Premier Doug Ford stated that the move is a direct response to U.S. tariffs and aims to protect Ontario’s economy. “Until the threat of tariffs is gone for good, Ontario won’t back down,” Ford said.
The surcharge, equivalent to $10 per megawatt-hour (MWh), applies to all electricity sold to U.S. buyers.
The Independent Electricity System Operator (IESO) is responsible for collecting the surcharge, which will be used to support Ontario workers, families, and businesses. The government retains the authority to increase or decrease the surcharge as needed and has indicated it may halt electricity exports entirely if tensions escalate.
Ontario exports significant amounts of electricity to the U.S., with 14.6 terawatt-hours sent in 2021, 14.2 in 2022, and 12.0 in 2023. The province has 26 transmission connections with neighboring regions, including seven with New York and four with Michigan.
This measure adds to Ontario’s broader retaliatory actions, which include a ban on U.S. alcohol sales at the LCBO, affecting American producers by an estimated $1 billion annually. Additionally, Ontario has barred U.S. companies from competing in $30 billion worth of government procurement contracts.
