Ontario’s 25% electricity surcharge is temporarily suspended, but for how long? Rising energy costs from international policies are set to affect US utility bills and personal finances

“This is the last thing I want to do,” he said, urging New Yorkers and citizens of the two other states impacted to call their representatives in Congress and their governors’ offices to voice their concerns about the escalating trade war, and the impact it's having on everyday Americans.

Following negotiations, Secretary of Commerce Howard Lutnick issued a joint statement with Ford on social media to announce that the tariffs will be put on hold.

“We have both agreed, let cooler heads prevail,” Ford later told reporters. And while Ontario’s premier reportedly said the surcharge is “still on the table,” on March 18, he added he’s not keen to antagonize the Trump administration.

Escalating tensions in the tariff war

This surcharge is in response to tariffs the president has already imposed on Canada, and those that have been proposed but not yet implemented. These include the existing 25% tariff on imports of steel and aluminum from all countries, which came into effect on March 12. The proposed across-the-board tariffs went into effect on March 4, but were paused two days later.

Canada’s retaliatory measures to the steel and aluminum tariffs include new duties on approximately $20 billion of U.S. goods.

The proposed 25% surcharge on electricity imports from Ontario would affect more than 1.5 million Americans in the three affected states. Minnesota governor Tim Walz took to X to express his frustrations.

“The first victims of Trump’s Trade war? Minnesotans struggling to pay their skyrocketing electric bill,” Walz posted on the site. “Minnesotans cannot afford Trump’s billionaire-run economy. We have to put a stop to this madness.”

While Minnesota receives only a small portion of its electricity from Ontario, Walz is worried about the downstream effects of an escalating trade war with Canada. Minnesota imports most of its potash from Canada, and tariffs on this import could have devastating consequences for farmers in the state.

How the tariffs affect you

In a statement from March 10, Ontario’s Ford said on average, the surcharge was expected to add about about $100 per month to the bills of hard-working Americans.