Ontario hikes electricity prices for New York, Michigan and Minnesota by 25% in response to Trump tariffs

The leader of Canada’s most populous province has followed through on a pledge to hike electricity prices for Americans in response to President Trump’s tariffs as residents of US border states New York, Minnesota and Michigan can expect to pay more for power.The Canadian province of Ontario raised electricity export prices by 25% for the three American states on Monday — marking a direct response to the escalating trade dispute between the two countries.Ontario Premier Doug Ford ordered the Independent Electricity System Operator, which oversees the province’s electricity market, to implement a $7-per-megawatt-per-hour fee on all power exports to the three states, Bloomberg News reported.The decision follows through on a promise Ford made last week when the US tariffs on Canadian goods went into effect.“Believe me when I say I don’t want to do this.I feel terrible for the American people,” Ford said.“It’s one person who is responsible.

That’s President Donald Trump.”The White House recently agreed to exempt cars and select goods from the tariffs under existing trade agreements, but Ontario proceeded with the price increase as planned.Ford’s government emphasized that revenue generated from the surcharge — potentially as much as $276,000 per day — would be reinvested to support workers, families and businesses within the province.Canada’s foreign affairs minister, Melanie Joly, welcomed the move as a strategic use of provincial resources.“If the premiers use levers that are to our advantage, good news,” she told reporters on Monday.Despite the aggressive stance, the actual impact on US consumers may be minimal.Electricity prices on US spot markets, where power is bought and sold in real-time, fluctuate based on supply and demand.With multiple sources available, American buyers are not obligated to purchase from Ontario, meaning they may be able to source cheaper electricity from alternative suppliers.New York imported about 4.4% of...