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

Electricity tariff by Canadian province

Minnesotans could soon be paying more for electricity as the trade war continues.

“We didn’t ask for this fight, but Canadians are always ready when someone else drops the gloves,” Mark Carney, Canada’s new prime minister, said. “So Americans should make no mistake. In trade, as in hockey, Canada will win.”

Canada is pushing back as a trade war between the U.S. gets more intense.

“I think the tariffs are going to be the greatest thing we’ve ever done as a country. It’s going to make our country rich again,” President Donald Trump said.

Ontario is charging 25% more for electricity that some Minnesotans use.

“The relationship is pretty much one way. We are dependent on them exporting to us,” Pete Wyckoff, Minnesota Department of Commerce deputy commissioner of energy resources, said.

The Minnesota Department of Commerce is already tracking the potential impact.

Minnesota is part of what’s called “MISO”

It’s the regional grid operator that works like a highway for electricity. The state shares that “highway” with Canada.

“There will be some modest upward price pressure just from the isolated 25% export tax on Ontario electricity,” Wyckoff said. “I think there’s no reason to get all that panic today, and we’ll see how things develop over the next few months.”

Minnesota gets the majority of its power from Manitoba, which is a different province in Canada.

State officials said the broader tariffs on energy products that will hit Minnesota hard, President Donald Trump postponed until April.

“If the tariffs are actually in place for a long time, that will not be good because that’s really when we will see energy prices bite for Minnesotans,” Wyckoff said. “It hits us because when there’s a trade war in energy, it’s paid for by the consumer.”

5 EYEWITNESS NEWS asked the Minnesota Department of Commerce how much tariffs will impact consumers. They explained they’re still working to calculate that number.

Minnesota Department of Commerce’s full statement regarding the impacts of tariffs on Canadian energy imported to Minnesota can be read below.

Tariffs have been imposed on Canadian imports, including energy.

Because of Minnesota’s high dependence on Canadian sources of energy, this will disproportionately affect Minnesotans in their pocketbooks.

It will raise the price of the gas we put in our cars, the natural gas we heat our houses with, the electricity we import as Canadian hydropower. Canada has already responded with further actions of their own, which will further raise energy costs in Minnesota. And many of our businesses depend on trade with Canada, including the energy sector.

This is a manmade crisis and one that will result in a much higher cost for energy bills for Minnesotans.