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By James Bickerton
News Reporter
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President Donald Trump has reacted with anger after Ontario Premier Doug Ford announced a new 25 percent surcharge on electricity exports to the United States, in response to a wave of tariffs on Canadian goods.
Writing on his Truth Social website on Monday Trump branded Canada a "tariff abuser" and insisted the United States would get the money back via reciprocal tariffs.
Newsweek contacted the government of Ontario and Global Affairs Canada, the Canadian government department that handles foreign affairs, for comment on Tuesday via online inquiry form and email outside of regular office hours.
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Why It Matters
Trump argued his tariff program is necessary to support American manufacturing and stop other countries exploiting the United States.
However, it has provoked immense anger in longstanding American allies, with the U.S. anthem now regularly being booed at sporting events in Canada. On Monday the S&P American stock index fell by 2.7 percent amid warnings from some economists that Trump's tariffs could push the U.S. into recession.
What To Know
Earlier in March Trump imposed tariffs of 25 percent on all goods from Canada and Mexico, excluding Canadian oil, and an additional 10 percent on trade with China. In response both Ottawa and Beijing announced retaliatory tariffs on American products. Following discussions with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum, Trump announced many, but not all, of these tariffs would be put on hold for one month.
In reaction to Trump's tariffs Ford announced a 25 percent surcharge on energy exports from his province to the U.S., and also warned he could cut off the electricity supply entirely if the trade dispute continues. Earlier this month Ford warned he could stop electricity exports to the U.S. "with a smile on my face" if Trump's then proposed tariffs went ahead.
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In his Truth Social post Trump wrote: "Despite the fact that Canada is charging the USA from 250% to 390% Tariffs on many of our farm products, Ontario just announced a 25% surcharge on 'electricity,' of all things, and your not even allowed to do that. Because our Tariffs are reciprocal, we'll just get it all back on April 2.
"Canada is a Tariff abuser, and always has been, but the United States is not going to be subsidizing Canada any longer. We don't need your Cars, we don't need your Lumber, we don't your Energy, and very soon, you will find that out. MAKE AMERICA GREAT AGAIN!!!"
Trump has repeatedly claimed that Canada is charging the U.S. tariffs of over 200 percent on dairy products. However according to a CNN fact check, while the provision for a 200 percent plus tariff on dairy goods was included in a trade agreement Trump signed with Canada during his first term in office, this is only if imports surpass a certain level, which is not currently taking place across any category.
Trump's claim that "we'll just get it all back on April 2" appears to refer to his vow to impose further tariffs if his initial tariff package was met by similar retaliatory measures from the targeted countries.
According to the Canada Energy Regulator in 2023 Ontario exported around 13.9 terawatt-hours of electricity to the U.S., around nine percent of its total production.
What People Are Saying
In a press release on Monday Premier Ford said: "President Trump's tariffs are a disaster for the U.S. economy. They're making life more expensive for American families and businesses. Until the threat of tariffs is gone for good, Ontario won't back down. We'll stand strong, use every tool in our toolkit and do whatever it takes to protect Ontario."
Speaking to Newsweek Joseph Webster, a senior fellow with the Atlantic Council Global Energy Center, said: "Doug Ford's threat to restrict electricity exports to the U.S. would fall especially hard on Buffalo and upstate New York, like Rochester.
"It's a relatively cold time of the year and this is peak electricity season for upstate New York, so the price impact at the local level could potentially be substantial. If electricity is cut with little warning, there will be severe impacts on prices and electricity volume."
What Happens Next
The ongoing trade war between the U.S. and Canada shows few signs of abating. It remains to be seen whether the White House will respond to Ford's energy surcharge with another round of its own tariffs, or whether some kind of deal can be reached between Washington and Ottawa.
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