(NewsNation) — Three US states — New York, Michigan and Minnesota — are dealing with electricity tariffs from Canada after President Donald Trump’s proposed tariffs on Canadian imports.
“I love Americans… But in saying that, no, we’re going to put a 25% tariff on electricity coming from Ontario to Michigan, New York and Minnesota,” Ford said during an appearance on Fox Business Network.
As of Monday, those three states are being charged 25% more for electricity. This will affect 1.5 million American homes and businesses, according to The Associated Press.
Search for Sudiksha Konanki, missing Pitt student, continues in Dominican Republic
Here’s the impact on each state and what officials are doing to combat rising electricity costs.
New York
Gov. Kathy Hochul said she has ordered state energy officials to review how much the tariffs could raise electricity and energy costs in New York.
“These federal tariffs have been poorly conceived from the start: crafted in secret with no transparency and no clear economic rationale, they’ve only served to destabilize our capital markets and create uncertainty among New York families and businesses,” Hochul said, according to the Associated Press.
According to U.S. Census data obtained by Newsweek, two of the top cities in New York that import Canadian electricity include Buffalo and Ogdensburg. Rochester could also be affected by these tariffs.
“Doug Ford’s threat to restrict electricity exports to the U.S. would fall especially hard on Buffalo and upstate New York, like Rochester,” Joseph Webster, senior fellow with the Atlantic Council Global Energy Center, told Newsweek.
As of 2024, Canadian electricity imports brought 11.7 million megawatt-hours (MWh) to Buffalo and 6.02 million MWh to Ogdensburg.
It is unclear how New York’s review of rising electricity and energy costs will result.
Minnesota
Gov. Tim Walz is critical of Trump’s actions, even though Minnesota only receives a small share of its electricity from Ontario, according to the Associated Press.
Walz posted on X, saying, “The first victims of Trump’s trade war? Minnesotans struggling to pay their skyrocketing electric bill. Minnesota cannot afford Trump’s billionaire-run economy. We have to put a stop to this madness.”
Kentucky bourbon makers fear becoming ‘collateral damage’ in Trump’s trade war
Walz is also worried about Manitoba enforcing a similar tariff. “So look, even if it were one megawatt, this is totally unnecessary. And the fact of the matter is, it doesn’t impact Donald Trump one bit. It impacts ratepayers in Minnesota. For what? These are our friends,” Walz said.
Amy Rutledge, a spokesperson for Minnesota Power, did say that the part of Minnesota that borders Ontario only receives a “very small” portion of its power from the province, according to the Associated Press.
Michigan
Public Information Officer for the Michigan Public Service Commission Matt Helms also believes that the impact on Michigan customers will be “small.” He said that most of the state’s electricity is created by utility companies in Michigan or through long-term contracts.
The Michigan Public Service Commission is more worried about the reliability of the electric grid. Electricity flows between the U.S. and Canada through an interconnected grid.
Canada’s conservatives trying to associate Carney with Trudeau
“Any action to limit or disrupt these flows would remove a layer of protection and make all of us — Canadians and Americans alike — more vulnerable to grid-scale outages,” Helms said.
Why is Canada putting tariffs on electricity?
This is the result of Trump’s tariffs on most imports from Canada and Mexico. Since then, he has said the North American tariffs would be paused for a month. However, both Mexico and Canada have threatened reciprocal tariffs alongside China, which also faces higher levies on imports because of these policies.
“I can’t imagine that these tariffs, if they go on, are going to stay on very long because of the threat of inflation. And again, if inflation reignites, that’s gonna be a major, major problem for the Trump administration,” former Minnesota Gov. Tim Pawlenty said.
Trump to double steel, aluminum tariffs on Canada to 50%
According to the premier’s office in Canada, the tariffs on electricity will add about $10 per megawatt-hour to the cost of power. That surcharge will cost households and businesses in these states an additional $100 per month on average on their energy bills.
These tariffs will generate an estimated $300,000 to $400,000 per day for Ontario.
Trump claimed that the tariffs have been put in place to help prevent fentanyl from coming over the border. However, Danielle Smith, Premier of Alberta, said, “We haven’t actually found that much product going across our borders.”
What are the benefits of Trump’s tariffs?
In a news conference, Ford said, “I will not hesitate to increase this charge. If the United States escalates, I will not hesitate to shut the electricity off completely.”
Soon-to-be Prime Minister Mark Carney agrees with the electricity tariffs. He said, “The Canadian government has rightly retaliated… My government will keep our tariffs on until the Americans show us respect.”
