Ontario Premier Doug Ford announced on Thursday that the province will impose a 25% tax on electricity exported to several US states starting early next week, escalating Canada’s trade war with the United States.
The tax, set to be announced on Monday and take effect on Tuesday, targets power sent to 1.5 million Americans.
Ford said the move responds to President Donald Trump’s decision this week to impose 25% tariffs on most Canadian imports, creating a trade war between the countries.
“We are moving forward with it. I feel terrible for the American people because it’s not their fault. It’s one person, President Trump,” Ford told 640 Toronto radio host Ben Mulroney.
“This will devastate both economies, but he’s attacking his closest allies.”
On Tuesday, Canada retaliated against the US tariffs by introducing immediate 25% duties on $30 billion in American goods, including steel, ketchup, and lawn mowers.
Additional tariffs on $125 billion of US products, such as appliances and frozen pizza, will start in the near future.
Ford warned Ontario could halt electricity exports entirely if Trump maintains tariffs into April, when reciprocal measures are expected.
“He [Trump] underestimated Canadians strength and resolve,” said Ford.
“Everyone hates this uncertainty. This is an unnecessary trade war Trump created.”
Ford did not specify which states would face the electricity tax, but Ontario currently exports power to New York, Michigan, and several other states.
The dispute marks the latest rift in Canada-US relations, with both sides vowing to protect domestic industries.
Ford emphasized Ontario’s role in pushing back.
“We’re standing up for our workers, our families, and our future,” said Ford.
