Ontario slaps 25% increase on electricity exports to US in response to Trump's trade war

TORONTO (AP) — Ontario's premier, the leader of Canada’s most populous province, announced that effective Monday it is charging 25% more for electricity to 1.5 million Americans in response to U.S. President Donald Trump's trade war.

Ontario provides electricity to Minnesota, New York and Michigan.

“I will not hesitate to increase this charge. If the United State escalates, I will not hesitate to shut the electricity off completely,” Ontario Premier Doug Ford said at a news conference in Toronto.

"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.”

Ford said Ontario’s tariff would remain in place despite the one-month reprieve from Trump, noting a one-month pause means nothing but more uncertainty.

Ford's office said the new market rules require any generator selling electricity to the U.S. to add a 25% surcharge. Ontario's government expects it to generate revenue of $300,000 Canadian dollars ($208,000) to CA$400,000 ($277,000) per day, “which will be used to support Ontario workers, families and businesses.”

The new surcharge is in addition to the federal government's initial CA$30 billion ($21 billion) worth of retaliatory tariffs have been applied on items like American orange juice, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles and certain pulp and paper products.

Trump launched a new trade war last week by imposing tariffs against Washington’s three biggest trading partners, drawing immediate retaliation from Mexico, Canada and China and sending financial markets into a tailspin.

Trump later said he has postponed 25% tariffs on many goods from Canada and Mexico for a month, amid widespread fears of a broader trade war.

Ford estimated it will add about CA$100 ($69) a month to the bills of each American affected.

“It needs to end. Until these tariffs are off the table, until the threat of tariffs is gone for good, Ontario will not relent,” Ford said.

Ford said Trump changes his mind every day, but if he continues to attack Canada he will do everything it takes to maximize the pain.

“Republicans, at least the ones I speak to, do not agree with President Trump but they are too scared to go out there and say it publicly,” Ford said. “It's a shame but we need to end this.”