The government of Ontario has issued a 25% surcharge on electricity exports to three U.S. states.

The surcharge will impact electricity sales for 1.5 million Americans.

The states affected are New York, Minnesota, and Michigan.

In total, the tariffs could cost $400,000  per day.

Here’s what The Hill reported:

The government of Ontario is applying a 25 percent surcharge starting Monday on electricity exports to three U.S. states in response to U.S. tariffs on Canada.
This surcharge will affect electricity sales for 1.5 million homes and businesses across Michigan, Minnesota and New York, the Ontario government said. In total, it could cost up to $400,000 per day.

New market rules are going into place requiring Canadian electricity sellers to add a $10 per megawatt-hour surcharge, equivalent to a quarter of the electricity’s average value, to the cost of power for sales to the U.S., according to a statement from Ontario’s Office of the Premier.

The additional charges are a response to 25 percent tariffs on Canadian and Mexican imports to the U.S. announced last week by the Trump administration.

President Trump has taken a few steps to soften the blow of his tariffs.

Per AP:

Ontario’s premier, the leader of Canada’s most populous province, announced that effective Monday it is charging 25% more for electricity to 1.5 million American homes and businesses in response to U.S. President Donald Trump’s trade war.

Ontario provides electricity to Minnesota, New York and Michigan.

“I will not hesitate to increase this charge. If the United States escalates, I will not hesitate to shut the electricity off completely,” Ontario Premier Doug Ford said at a news conference in Toronto.

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