US Imposes 50% Tariffs on $20 Billion in Canadian Goods, Threatening Electricity Trade

en.Wedoany.com Reported - President Donald Trump's 50% tariffs on approximately $20 billion in Canadian goods took effect over the weekend, and Canada is expected to announce retaliatory tariffs on U.S. goods Tuesday, while threatening further measures. With consumers already under pressure, the new U.S.-Canada trade war once again threatens the electricity sector.

On Monday, Ontario Premier Doug Ford said "all options are on the table," including a complete halt to the province's critical minerals and electricity exports. He discussed a 25% tariff on U.S. electricity with Canadian Prime Minister Mark Carney.

In 2025, during an earlier trade dispute, Ontario imposed a 25% tariff on electricity exports to the U.S., which was lifted one day after taking effect as both sides moved to ease tensions.

ISO New England, the grid operator for New England, said in a statement to Utility Dive that if Canada chooses to reduce or halt electricity trade, it does not expect reliability issues from reduced imports, at least under typical weather conditions.

The operator added that under extreme temperatures, New England's supply "could be tight, but that depends on many factors that are difficult to predict."

ISO New England also noted that electricity now flows in both directions between New England and its Canadian neighbors; if Canadian provinces reduce or cut off electricity deliveries to New England, the impact would be primarily financial—wholesale market prices would rise—and the region's emissions are also expected to increase.

The U.S. Energy Information Administration (EIA) highlighted earlier this month the growing value of electricity and natural gas trade between the U.S. and Canada. EIA analysts noted that total electricity trade between the two countries in 2025 amounted to $3.2 billion, with 67% consisting of electricity imported from Canada into the U.S.; electricity trade is "relatively small compared to other energy trade."

However, the two countries' electricity sectors are becoming increasingly intertwined. In June, the Champlain-Hudson Power Express—North America's longest fully buried transmission line, costing $6 billion—began delivering Canadian hydropower to New York City, expected to meet up to 20% of the city's electricity demand.

Kevin Lanahan, senior vice president of external affairs and corporate communications at the New York ISO (NYISO), said in a statement to Utility Dive that the organization maintains close and regular contact with Hydro Quebec and Ontario's Independent Electricity System Operator, and expects ample supply to meet anticipated system demand.