Ontario’s leader said he will add a 25% export tax on electricity sent to New York and other states in retaliation for Trump’s tariffs. Ontario provides 2,500 of the 4,600 megawatts of capacity that New York draws upon from Canada, the NYISO reports.
New England is particularly reliant on fuel and other energy imports from Canada. Trump imposed a 10% tariff on that sector, instead of the full 25% tax other industries are facing. But experts say even that additional cost is still likely to be passed on to consumers.
Businesses and consumers across New England rely heavily on Canadian imports, raising fears about the trickle down costs of President Trump’s imposition of a 25% tariff. In Massachusetts, Canadian imports were valued at around $10.
Canada's most populous province may bar American-made alcohol in addition to restricting electricity exports to Michigan, New York and Minnesota if U.S. President-elect Donald Trump imposes sweeping tariffs on all Canadian products,
Power disruptions could follow in Michigan and beyond if Ontario, Canada follows through on halting electricity exports amid the trade war.
With Canada supplying a significant portion of the electricity, refined petroleum, and natural gas used in New England, many experts agree that consumers will likely bear the brunt of Trump’s tariff.
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Whether the tariffs going into effect Tuesday apply to electricity imports â€” and what role the ISOs must play in collecting them — is unclear, they told the Federal Energy Regulatory Commission, but they need to be prepared.