Ontario is imposing a 25 percent surcharge throughout electricity to the United States as part of its retaliation measures against the tariffs of the president of the United States, Donald Trump, on Canadian goods.
The new tax entered into force on Monday and will add around $ 10 per Megavatio-Hora to the cost of the power directed south, says the province. It will generate an estimate of $ 300,000 to $ 400,000 per day, money that will be used to support workers and businesses affected by US tariffs.
“Believe me when I say I don’t want to do this,” said Ontario Prime Minister Doug Ford, at a press conference on Monday.
“I feel terrible for the American people, because it is not the American people who began this commercial war. It is a responsible person, it is President Trump,” he said.
Ontario provides electricity to approximately 1.5 million customers in the border states of northern New York, Michigan and Minnesota. Ford said that the surcharge will cost the home or the average business in these additional $ 100 states per month in their energy invoices.
He added that the magnitude of the tax could increase if the Trump administration continues to increase its commercial war against Canada.
“Until these rates are out of the table, until these tariffs have gone forever, Ontario will not give in. We will not go back,” Ford said together with the Minister of Energy of Ontario, Stephen Lecce.
The province has also drawn the American alcohol of the LCBO shelves and has prohibited American acquisition contracts, in addition to the initial round of the federal government of retaliation rates on goods of $ 30 billion in American products.
The electricity surcharge is being imposed by a LECCE directive to the operator of the Electricity System of the Province, which will require that any generator that sells electricity to the US. UU. Add what is called a tariff response load.
The system operator will collect the money generated by surcharge on behalf of the government monthly.
Last week, Trump Temporarily pause the implementation of 25 percent tariffs on “compatible” Canadian exports with the terms of the Canadá-Usexico (Cusma) agreement until April 2. But both Ford and Ottawa have said that retaliation measures will advance until tariffs are raised.
“To pause some tariffs, making last minute exemptions, it will not reduce it. We need to finish chaos once and for all,” Ford said Monday.
He also reiterated his previous threat of stopping ontarium electricity flows to the United States completely if the commercial war persists.
When asked about a specific threshold that can force him to take that step, Ford refused to be specific.
“If necessary, if the United States intensifies, I will not hesitate to cut the electricity completely,” Ford said. “Let’s see how this develops. [Trump] Change your mind almost every day. “
Lorenda Reddekopp of CBC breaks down how Doug Ford’s plan to impose an electricity tax could affect the United States
Ford urged other provinces, in particular Alberta, which sends more than four million barrels of oil in the south of the border, to look at similar movements.
“A message for Premier (Danielle) Smith: one day, I think I could have to use that Trump card and give approval for an export tax,” he said.
“Do you want to talk about a Trump card? That will instantly change the game, instantly, when the Americans, and know the Americans, suddenly, their gas prices rise 90 (cents) to $ 1 per gallon, they will lose their heads. Therefore, we need at least put that in the window.”
Smith has said that Alberta needs to take measures, but she will not reduce or impose counter-toarance in oil and gas shipments. The Prime Minister of Saskatchewan, Scott Moe, who leads a province that exports uranium and vital potassa to the United States, has similarly expressed a reluctance to impose export tariffs.
Ontario will not need to buy us electricity this summer: Lecce
During the press conference, Lecce said that most of the year, Ontario sells many times more electricity from the US.
Depending on the energy demands in New York, Michigan and Minnesota, those states sometimes reveal the surplus of electricity that originated in Ontario to other states, particularly along the I-95 corridor along the east coast.
When Ontario buys electricity generated by the United States, it is often in the maximum summer months.
When asked if Ontario could face reciprocal surcharges in the warmest season, Lecce said that the province’s electricity system operator is “totally confident in its ability to maintain the lights on” with energy generated in Ontario and Quebec.
