Canadian Premier imposes significant tax hike on electricity for Americans in response to Trump’s tariffs

Ontario Premier Doug Ford has responded to Donald Trump’s imposition of tariffs on Canada by announcing that the province will increase electricity prices by 25 percent.

In January, President Donald Trump, upon taking office as the 47th president of the United States, quickly signed several executive orders. One significant order signed in February mandated ‘catastrophic’ tariffs, which included a 25 percent tariff on goods imported from Canada and Mexico and 20 percent on goods from China.

Trump suggested that for Canada to avoid these tariffs, it should consider becoming the US’s ‘cherished 51st state.’ In response, Canadian Prime Minister Justin Trudeau revealed plans for counter-tariffs and indicated that Canada was ‘in active and ongoing discussions with provinces and territories to pursue several non-tariff measures.’

Following this, Ontario’s Premier Doug Ford threatened to cut off power to 1.5 million US customers.

Ford told reporters that if the US aims to ‘try to annihilate Ontario,’ he would do ‘everything – including cutting off their energy with a smile on [his] face,’ promising to retaliate ‘twice as hard.’

Despite expressing remorse to the American citizens and clarifying that the issue lies with ‘[their] president,’ Ford has now announced Ontario’s latest measure in response to Trump’s tariffs on Canada.

At a news conference in Toronto, Ford stated that Ontario, which supplies electricity to Minnesota, New York, and Michigan, will implement a 25 percent increase in electricity charges.

Furthermore, the new market rules will mandate that any electricity generator must add a 25 percent surcharge on electricity sold to the US.

This move is projected to generate CA $300,000-400,000 daily, with the revenue intended to ‘support Ontario workers, families, and businesses.’

Ford warned, as quoted by AP News: “I will not hesitate to increase this charge. If the United States escalates, I will not hesitate to shut the electricity off completely.

“Believe me when I say I do not want to do this. I feel terrible for the American people who didn’t start this trade war. It’s one person who is responsible, it’s President Trump.”

The 25 percent surcharge on electricity follows Prime Minister Trudeau’s announcement of counter-tariffs against the US, which includes ’25 percent tariffs against CA $155 billion of American goods.’

Trudeau stated that the response would start with ‘tariffs on CA $30 billion worth of goods immediately, and tariffs on the remaining CA $125 billion on American products’ 21 days following the initial announcement.

The implementation of Trump’s 25 percent tariffs was delayed for a month before taking effect on March 4. However, the US President recently decided to postpone some of the tariffs again, with plans to reinstate them in April.

While Mexico’s President Claudia Sheinbaum opted to suspend retaliatory tariffs, Trudeau affirmed that Canada’s measures would remain in effect.