New York and two other northern states are now facing a surcharge on all electricity provided by Canada after President Donald Trump’s tariffs on the country went into effect last week.
Although Trump announced Thursday a subset of goods covered in the United States-Mexico-Canada Agreement would not face new tariffs for at least another month, which applies to about 38% of imports from Canada, the 25% surcharge threatened by Ontario Premier Doug Ford last week was officially instated Monday.
“President Trump’s tariffs are a disaster for the U.S. economy,” Ford said in a statement Monday. “They’re making life more expensive for American families and businesses. Until the threat of tariffs is gone for good, Ontario won’t back down. We’ll stand strong, use every tool in our toolkit and do whatever it takes to protect Ontario.”
Ford said the surcharge, which will cost up to $400,000 each day it remains in place, will affect 1.5 million homes and businesses in New York, Michigan and Minnesota.
Here’s what to know.
What does the surcharge entail?
Any generator that sells electricity to the U.S. will include an added 25% surcharge valued at $10 per megawatt-hour to the cost of power, the Premier’s news release states, generating a daily revenue of $300,000 to $400,000, “which will be used to support Ontario workers, families and businesses.”
Canada’s government has already imposed $30 billion in retaliatory tariffs and the Liquor Control Board of Ontario has removed all U.S. products from its shelves, according to the news release.
Does New York get its electricity from Canada?
Yes, New York receives some of its electricity from Canada, according to the New York Independent System Operator (NYISO), as its interties with Ontario’s Independent Electricity System Operator (IESO) allow for up to 2500 megawatts of imports from Ontario to the Empire State as well as an additional 2100 megawatts through its interties with Hydro-Québec.
In 2023,
net imports from HQ and IESO totaled 6,628 gigawatt hours.
Does NY get electricity from Canada?: What to know about threat of surcharge, shutoff
How might New Yorkers be affected by the surcharge?
In a statement released Monday, the NYISO said they’re “analyzing the impacts of the order by the Ontario Premier and working closely with the Independent Electricity Operator of Ontario to ensure a reliable grid and stable flows of electricity across interregional transmission lines. The NYISO expects to have adequate reserves to meet reliability criteria and forecasted demand for New York.”
The NYISO previously said in a statement released on Feb. 28, “The reliable, uninterrupted flow of economic power across the Canadian interties is critical to protect the health, safety and welfare of New York citizens, residents across the Northeast U.S., and the citizens of Canada — especially during stressed system conditions.
“The NYISO and neighboring system operators have serious concerns that applying export tariffs to electricity may have serious adverse effects on reliability and wholesale electric markets.”
Contributing: USA TODAY Network
Emily Barnes reports on consumer-related issues for the USA TODAY Network’s New York Connect Team, focusing on scam and recall-related topics. Follow her on X and Instagram @byemilybarnes. Get in touch at [email protected].
