The tariff game continues. This time it’s Ontario Canada who wanted to throw their electricity weight around.

Ontario started a 25% surcharge Monday for the electricity it exports to three U.S. states.

Head of the Canadian province Premier Doug Ford has been an outspoken critic of the tariffs President Donald Trump has imposed on imports from Canada, saying he would restrict the electricity exports to Minnesota, Michigan and New York if the tariffs continue.

In a press conference Monday, Ford said they were moving forward with a 25% export fee on electricity for 1.5 million homes and businesses, and may increase it or cut it off depending on Trump’s actions.

Ford estimated on average it would add $100 to monthly electricity bills for impacted Americans.

And…all the pearls were clutched and then some. The doom and gloom that resonated through Monday and into Tuesday was dramatically over the top. However, there were problems with this 25% TAX (not a fee) on the electricity for those homes and businesses. 

First, a Canadian electric company is powering US homes? That’s an interesting bit of news. Secondly, the next bill will see a jump of $100? Really? REALLY? I mean, if your electric bill runs $175 for the month, an extra 25% is just under $44. Even if your bill runs at $250, the additional tax is still less than $70. That said, I’d say NO ONE wants to see that kind of tax on their electric bill, even those who live in California and have to deal with insane taxes and “fees”(taxes) on their electric bills! 

Ontario Premier Doug Ford says he just feels super bad that this will happen to his customers, but since Trump is President and is imposing all these massive tariffs, it sucks to be you! Does anyone stop to think about what tariffs are imposed by CANADA on American goods and how much THEY cost? Nope. 

For example, Canada has a 250% tariff on American dairy. Yes, you read that percentage correctly. However, that’s not the whole story. 

“It is accurate that Canada imposes a tariff of approximately 250% on U.S. exports of certain dairy products into Canada, and even more with Canada’s 25% retaliatory tariffs in place. However, that tariff would only apply if we were able to reach and exceed the quota on U.S. dairy exports agreed to under the U.S.-Mexico-Canada Agreement (USMCA). Frustratingly, the U.S. has never gotten close to exceeding our USMCA quotas because Canada has erected various protectionist measures that fly in the face of their trade obligations made under USMCA.

In other words, because of the measures Canada has imposed, US Dairy has been unable to export to the fullest measure possible, thus trade between the two countries has been hindered …by Canada. 

Back to the issue of how much people’s electric bill will cost. There is a LOT more to the story on this. 

Republicans have been telling you and Minnesota Democrats to diversify our energy portfolio for the past decade.

Canadian energy only contributes a whopping 1% to the MISO grid.

But sure, it’s Trump’s fault.

— Dustin Grage (@GrageDustin) March 11, 2025

WAIT… Only ONE PERCENT of Minnesota’s electricity comes from Ontario Canada? Well golly gee. How about them apples? I mean, an additional $1.88 per bill means the sky has indeed fallen. 

Well, President Trump played hardball. 

And guess what? Ontario caved.

Ontario Premier Doug Ford announced Tuesday that Canada’s most populous province was suspending its 25% surcharge on electricity exports to the US, hours after President Trump announced additional 25% duties on Canadian aluminum and steel.

In a statement on X, Ford said he had a “productive conversation” with Commerce Secretary Howard Lutnick and the two would meet in Washington Thursday alongside US Trade Representative Jamieson Greer.

Ford said he would discuss a “renewed USMCA” with Lutnick and Greer, referring to the North American trade agreement signed during Trump’s first term.

And because Ford backed down after receiving various reality checks, President Trump pulled back his plans for tariffs on aluminum and steel. 

What many are forgetting is that Trump was very clear in his first term about how he viewed tariffs, especially when other countries don’t play on a decently level playing field. And isn’t it interesting that Trudeau and Trump had a little tariff scuffle back in 2018? Not only that, but Trump played the tariff game with China and…prevailed. 

Here’s the deal with all this. Onerous tariffs have been imposed upon the U.S. for decades. President Trump has never liked them as he and others have seen first hand how it negatively impacts business, particularly small business. He wants to level the playing field to drive innovation, entrepreneurship, and growth not only here in the U.S. but abroad. Tariffs end up stifling that on numerous levels. 

Ontario got a reality check and this is a win for the people there and the U.S. 

Feature Photo Credit: Canada power lines and flag via iStock, cropped and modified