- Ontario Premier Doug Ford is threatening to cut off Canadian power to the U.S. in retaliation for President Trump’s trade war, a move that could boost already high electricity prices in some states.
- Ford said ‘everything is on the table’, including cutting off electricity to the U.S., and that Ontario powers 1.5 million homes and businesses.
- Ford called for a ‘Team Canada approach’, saying he is not the only province that ships electricity to the U.S. and that he can’t do it alone.
- Any effort to cut off electricity would come on top of Canada’s retaliation on $27.6 billion in U.S. goods, including steel, aluminum, fish and cheese, after the U.S. imposed tariffs on Canadian goods.
- Canada supplies less than 1 percent of U.S. electricity, but some Northern states get a more significant share, and a shutoff could raise already rising prices.
- John Parsons of MIT’s Sloan School of Management said that without Canadian imports, the U.S. would have to switch to more expensive plants, increasing CO2 emissions and costs, and estimated a shutoff could cost between $300 million and $600 million per year.
- Doug Arent of Columbia University said Ontario alone would likely be a ‘symbolic gesture,’ but if more provinces were involved, Americans in the Northeast could see price impacts if a shutoff lasts more than a few days.
- Grid operators NYISO and ISO New England said they anticipate adequate supplies and no reliability issues under typical conditions, but ISO New England noted potential financial impacts and higher wholesale prices.
Ontario Premier Doug Ford has escalated tensions with the U.S. by threatening to cut electricity exports in response to President Trump’s trade policies. Ford stated, “everything is on the table,” emphasizing the need for a collaborative approach among Canadian provinces to effectively retaliate.1
Ford's remarks come as the U.S. faces rising electricity prices, particularly in states that rely heavily on Canadian power. He noted, “We power 1.5 million homes and businesses,” indicating the significant impact of such a decision.2
Experts warn that cutting off Canadian electricity could lead to increased costs for American consumers. John Parsons, a senior lecturer at MIT, explained that without Canadian imports, the U.S. would have to rely on more expensive power plants, potentially increasing CO2 emissions and costs by between $300 million and $600 million per year.67
While Ford's unilateral action may be largely symbolic, Doug Arent from Columbia University noted that a coordinated effort from multiple provinces could significantly impact electricity prices in the Northeast U.S. “If it’s off for days or weeks, then in that month, there might be price impacts,” he said.8
Despite these threats, grid operators like NYISO and ISO New England have stated they anticipate sufficient electricity supplies to meet demand, although they acknowledge potential financial impacts and increased emissions due to higher wholesale prices.910
“Ford says Ontario powers 1.5 million homes and businesses, and he calls for a 'Team Canada approach' since other provinces also ship electricity. A shutoff could cost $300 million to $600 million per year, though grid operators expect adequate supplies under typical conditions.”
