Ontario’s 25% electricity surcharge is temporarily suspended, but for how long? Rising energy costs from international policies are set to affect US utility bills and personal finances

Escalating tensions in the tariff war

This surcharge is in response to tariffs the president has already imposed on Canada, and those that have been proposed but not yet implemented. These include the existing 25% tariff on imports of steel and aluminum from all countries, which came into effect on March 12. The proposed across-the-board tariffs went into effect on March 4, but were paused two days later.

Canada’s retaliatory measures to the steel and aluminum tariffs include new duties on approximately $20 billion of U.S. goods.

The proposed 25% surcharge on electricity imports from Ontario would affect more than 1.5 million Americans in the three affected states. Minnesota governor Tim Walz took to X to express his frustrations.

“The first victims of Trump’s Trade war? Minnesotans struggling to pay their skyrocketing electric bill,” Walz posted on the site. “Minnesotans cannot afford Trump’s billionaire-run economy. We have to put a stop to this madness.”

While Minnesota receives only a small portion of its electricity from Ontario, Walz is worried about the downstream effects of an escalating trade war with Canada. Minnesota imports most of its potash from Canada, and tariffs on this import could have devastating consequences for farmers in the state.

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How the tariffs affect you

In a statement from March 10, Ontario’s Ford said on average, the surcharge was expected to add about about $100 per month to the bills of hard-working Americans.

Ford further threatened to cut off electricity supplies completely if the trade war escalated. While this hasn’t yet come to pass, it’s still a possibility as tensions mount between the two countries.

You may also want to look into how your state in particular may be impacted by any escalations. For New Yorkers, who are largely dependent on Ontario’s electrical exports, experts recommend making a plan to offset rising energy costs.

This can include reviewing your current utility plan, and contacting your provider to look for ways to bring down your monthly bill.

New Yorkers can also take advantage of the Green Jobs/Green New York (GJGNY) program, which is designed to provide access to energy assessments, installation services, and low-cost financing for residential customers.

New York homeowners can also apply for loans up to $13,000 to cover the cost of green energy upgrades for their homes.