Ontario premier sticks to electricity tariffs despite Trump trade reversal

Ontario Premier Doug Ford is steaming ahead with his pledge to impose 25 percent tariffs on electricity sent to the United States starting Monday, despite President Donald Trump’s decision to suspend most tariffs on Mexico and Canada Thursday afternoon.

The move is an escalation of the trade tensions between the two countries after Trump has repeatedly threatened and withdrawn tariffs against Canada, which is the U.S.’ biggest energy trading partner.

“We’re going to put a 25 percent tariff on electricity coming from Ontario to Michigan, New York and Minnesota,” Ford said to Fox Business News in response to a question on whether he had changed his mind about imposing the tariff in light of Trump’s shift. “And isn’t this a shame? It’s an absolute mess he’s created.”

Officials in affected states say the move could raise costs and threaten grid stability for the 1.5 million customers across Minnesota, Michigan and New York who receive power from the province.

Ford lamented the decision in a CNN interview earlier Thursday but said he felt he had little choice.

“And honestly, it really bothers me we have to do this,” Ford said in that interview. “I don’t want to do this. I want to send more electricity, more critical minerals, more oil. That’s what we want to do.”

Though Canada’s total exports of hydropower to the U.S. make up only a sliver of U.S. electricity generation, experts say the shared grid between the two countries is critical to maintaining system reliability. The premier of Quebec previously told POLITICO the province would similarly consider stamping tariffs on their power exports to New England.

Border states have raised concerns about the impact of such tariffs on both customer costs and grid stability.

“The United States and Canada share one of the most integrated international electric grids in the world, allowing system operators in both countries to pool resources for reliable and economic electric supply,” read a Feb. 28 statement from the New York Independent System Operator, which operates the state power network, in response to tariff threats.

“The NYISO and neighboring system operators have serious concerns that applying export tariffs to electricity may have serious adverse effects on reliability and wholesale electric markets,” the statement added.

NYISO did not immediately respond to a request for comment on the premier’s tariff announcement.

Matt Helms, a spokesperson from Michigan’s utility regulator, similarly listed possible reliability disruptions on the power grid as one of the agency’s “most significant concerns” related to retaliatory tariffs earlier this week.

Helms said the Public Service Commission does not have any further comment on the latest tariff action.

And the Minnesota Commerce Department released a statement this week decrying the “manmade crisis” the tariffs would cause. “We are confident that we will be able to keep the lights on for Minnesotans, but potentially at a much higher cost for energy bills,” the statement read.

A department spokesperson said its position remains the same when asked for comment Thursday.