The trade war between the United States and Canada is officially underway, and while the majority of the discussion has (rightfully so) revolved around tariffs, electricity could be the dominant talking point the next few days.

On Tuesday, the Premier of Ontario (Canada's largest Province) spoke about imposing a hefty surcharge on American energy exports. This surcharge would include the state of Minnesota, one of the top exporters in the U.S. of Canadian electricity and energy.

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Credit: Canva
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Ontario Premier Doug Ford, leader of the Progressive Conservative Party of Ontario, said at a press conference Tuesday he would apply a 25% surcharge on energy exports to New York, Michigan and Minnesota and would consider restricting the electricity exports down the line if the tariffs persist. The province has interconnections with the provinces Manitoba and Quebec as well as three U.S. states: Michigan, Minnesota, and New York.

-USA Today Website

Ford also hinted that Canada could switch off electricity to Americans. If this were to happen and Canada "flipped the switch", states like New York, the New England States, Michigan, and yes, even Minnesota could face consequential challenges. Some of the challenges could include higher electricity bills, and potential outages in the future.

Historically, the North Star State has been a big importer of Canadian energy. In 2023, Minnesota imported over $700 million in hydroelectric power from its neighbor to the north.

For more information on the tariffs' impact and what goods will be affected, check out this article from USA Today.

Story Sources: Statista Website, CNBC Website, 

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