Doug Ford’s Electricity Export Tax Plan Sparks Call from U.S. Commerce Secretary Lutnick

Ontario Premier Doug Ford has doubled down on his decision to impose a 25% export tax on electricity supplied to U.S. states, despite intense pressure from U.S. Commerce Secretary Howard Lutnick. Sources confirm that Lutnick had a “tough and aggressive” conversation with Ford on Tuesday, urging him to withdraw the proposed tax—but Ford stood firm, insisting that Ontario would not back down while U.S. tariffs remain in effect.

Ford’s move comes in response to sweeping tariffs imposed by U.S. President Donald Trump, which have rattled trade relations between Canada and the United States. Speaking at a press conference, the Ontario premier outlined the details of the new tax, which would affect electricity exports to New York, Michigan, and Minnesota—states that collectively rely on Ontario’s power grid to support 1.5 million homes and businesses.

While Ford did not specify when the tax would be implemented, he made it clear that the surcharge was part of broader efforts by Canadian governments to push back against U.S. trade restrictions.

“This surcharge would be in addition to actions Canadian governments are already taking,” Ford wrote in a letter addressed to U.S. lawmakers and governors in the affected states.

Despite the premier’s strong stance, the path to enforcing the tax remains unclear. Ford acknowledged that electricity exports fall under federal jurisdiction, meaning Ontario must work closely with the federal government to enact the policy.

“The federal government is in charge of any export, so we will be working with them,” he said. “I’ll be speaking to the prime minister this afternoon to discuss what the province can do to speed up retaliatory measures.”

However, with Ontario’s legislature not set to reconvene until at least March 17 following a snap election, any formal legislative action could face delays. Ford also hinted that if trade tensions escalate further, Ontario could go as far as cutting off electricity exports entirely.

“If these tariffs persist into April, we’ll consider cutting off electricity to the U.S. altogether,” he said, adding that the surplus energy could instead be redirected to support Ontario’s manufacturing sector.

Beyond the electricity tax, Ford has taken additional measures to retaliate against U.S. trade policies. He announced that American companies would be barred from participating in government procurement contracts, urging municipalities across the province to adopt similar restrictions.

“I’ve asked the Ontario Public Service, our ministers, and our deputy ministers to go through everything with a fine-tooth comb,” Ford said. “No matter if it’s services in the tech sector or any other products, we need to stop immediately. And if they come at us, sue us—so be it. We are standing up for Ontario. We are standing up for Canada, and we are willing to fight in court.”

Ford made it clear that he intends to make the economic repercussions felt, stating bluntly:

“I want to inflict as much pain as we possibly can.”

As part of his hardline response, Ford also announced the cancellation of a $100 million agreement with Elon Musk’s Starlink, a move that could have significant ramifications for rural broadband expansion efforts in Ontario.

The announcement came just hours after President Trump imposed a sweeping 25% tariff on Canadian and Mexican goods, escalating trade tensions between the two nations.

Despite his aggressive stance, Ford expressed regret that his policies would negatively impact the economies of Ontario’s neighboring states.

“I feel terrible, because they are great governors,” Ford said, referencing his relationships with officials in New York, Michigan, and Minnesota. “I know all three of them. I work well with them. I’ve met them all. We’ve got them to Ontario. They are great people. I have to apologize to the governors and the American people. You need to make sure you send a message to President Trump.”

As tensions between Ontario and the U.S. continue to rise, the coming weeks will determine whether negotiations can ease the standoff or if Ford will proceed with his bold economic countermeasures.