Over one million US homes could soon be left without electricity, as tensions between Canada and Donald Trump threaten to explode over tariffs. The US President is looking at slapping 25% levies on a range of goods, that include petroleum and delivery trucks.
Despite granting a last minute reprieve until at least April, the Republican boss shows no sign of backing down. He appeared to goad Toronto even more at the end of last week, when he threatened to charge a whopping 250% levy on Canadian dairy and lumber imports. Trump’s bellicose remarks towards his northern neighbour have infuriated Canadian politicians and the public alike.
In a sign that Canadians are up for the fight, Ontario’s premier Doug Ford said he would implement a 25% surcharge on electricity exports to three US states from Monday.
The politician added he would turn off all access if the White House adds new tariffs on Canadian goods in April.
“If the United States escalates, I will not hesitate to shut the electricity off completely,” he told reporters.
“Believe me when I say I do not want to do this, I feel terrible for the American people, because it’s not the American people who started this trade war. It’s one person who’s responsible. That’s President Trump.”
Canada supplies electricity to roughly 1.5 million US homes in Minnesota, Michigan and New York.
In total, the US imported more than 27 million MWh of electricity from Canada in 2024, enough to power several million American homes.
Ford said the extra 25% levy would cost American families and businesses around $100 (£77) extra per month. He also hinted he could raise the 25% charge even higher, if US tariffs escalate.
Analysts have warned that a trade war could send Canada’s economy into recession, as well as hitting US consumers hard in the pocket for goods such as cars and petrol.
“This would be a real trade war, not a trade skirmish. This is serious. You would see job loss and people lose their homes,” Joe Brusuelas, chief economist at RSM, told CNN.
The 25% surcharge prompted an response by Trump, who on his Truth Social platform wrote in the early hours of Tuesday: “Because our Tariffs are reciprocal, we’ll just get it all back on April 2. Canada is a Tariff abuser, and always has been, but the United States is not going to be subsidizing Canada any longer.
“We don’t need your Cars, we don’t need your Lumber, we don’t your Energy, and very soon, you will find that out. MAKE AMERICA GREAT AGAIN!!!”
