President Donald Trump imposed 25% tariffs on goods imported from Canada and Mexico, prompting leaders in both countries to respond in kind, with one even threatening to charge more for or shut off electricity in Michigan, New York, and Minnesota.
On Tuesday, Ontario Premier Doug Ford shared an X post stating that he spoke with leaders in New York, Michigan, and Minnesota, “putting them on notice” that his province is prepared to levy a 25% surcharge on electricity exported to their states if Trump’s tariffs remain in place.
“If necessary, we will not hesitate to increase the charge or turn off the electricity completely,” Ford stated in the X post.
During Trump’s formal address to a joint session of Congress on Tuesday, he stated that “tariffs are about making America rich again and America great again.” The 78-year-old warned that “there will be a little disturbance” as a result of his tariffs, but added, “We’re fine with that. “It will not be much.”
On Tuesday, the Canadian government announced that it will impose 25% retaliatory tariffs on billions of dollars in imported goods from the United States, starting with a list of goods worth $30 billion. If the current US tariffs remain in place, the counter-tariffs will increase to $155 billion, and this figure could rise even higher if new tariffs are imposed, according to Canadian officials.
Here’s what you should know about Ford’s statement and how feasible it is in each of the three states.
What will happen to New York’s electricity?
In a statement issued late last February, the New York Independent System Operator (NYISO) stated that “the United States and Canada have one of the most integrated electric grids in the world, allowing system operators in both countries to pool resources for improved reliability and economic efficiency.”
“We are in close and regular contact with Hydro Quebec and Ontario’s Independent Electricity System Operator,” according to the statement. “The NYISO anticipates having adequate supplies to meet expected demand on the system.”
The NYISO deemed the “reliable (and) uninterrupted” flow of electricity across the Canadian interties “critical to protect the health, safety, and welfare of New York citizens, residents across the Northeast U.S., and citizens of Canada.”
“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,” according to the corporation’s website.
With the Canadian tariff order taking effect on Tuesday, the NYISO stated that it was unclear whether imports of electrical energy from Canada would be affected. When contacted by USA TODAY on Wednesday, a spokesperson for the corporation stated that it had “no further comment at this time,” but would provide more updates as the process progressed.
What will happen to Michigan’s electricity?
Michigan will be impacted if Ford’s threat is carried out, but the state does not consume the vast majority of the electricity it receives from Ontario, according to Dan Scripps, chair of the Michigan Public Service Commission and a former state representative, in an interview with the Detroit Free Press, part of the USA TODAY Network.
According to Scripps, the electricity from Ontario flows through Michigan and into several other states, forming the Eastern Interconnection, an electrical grid that stretches from central Canada to states east of the Rocky Mountains.
Scripps added that Michigan Utilities, DTE Energy, and Consumers Energy either generate a significant amount of their own electricity or have long-term purchase agreements with wholesale markets.
Although Michigan may not receive a large amount of power from Canada, Scripps said it is difficult to predict the impact of Ford’s threat, but he did acknowledge that power prices in the state will most likely rise.
“On the reliability side, I have bigger concerns,” he told me. “This flow, called the Lake Erie flow loop, is beneficial for grid reliability on both sides of the (U.S./Canada) border.”
According to Scripps, a disruption in the flow of power may increase the risk of power outages across the United States and Canada.
What will happen to Minnesota’s electricity?
According to the Star Tribune, utility officials and regional grid operators in Minnesota believe Ford’s threat will have little impact on their state.
The Minnesota officials’ comments follow the North American Electric Reliability Corporation’s (NERC) report that the state’s electric grid is at high risk of power shortages. According to the NERC’s 2024 Long-Term Reliability Assessment, which provides projections for 2025 to 2034, Minnesota is the only region out of 11 to have a “high” risk assessment.
“High-risk areas are likely to experience a shortfall in electricity supplies at the peak of an average summer or winter season,” the National Energy Research Council (NERC) stated.
In a January statement, Darrick Moe, president and CEO of the Minnesota Rural Electric Association, stated, “We must heed the warnings issued by our not-for-profit regulatory authorities about the future of power supply in our region.” We can’t keep shutting down plants and delaying the permitting of generation resources that will help ensure Minnesota’s reliability.”
