Tariffs could impact longstanding electricity trade between US and Canada
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Source: ABC News
March 11, 2025, 3:07 PM
The tariffs the Trump administration is imposing on Canada could disrupt the longstanding trade of electricity between the United States and its northern neighbor, effectively raising energy bills in multiple U.S. states. President Donald Trump ignited a trade war on Canada and Mexico immediately upon taking office, announcing on Inauguration Day that he expected to place 25% tariffs on both countries.
After weeks of back and forth, the trade war escalated further after Ontario slapped a 25% surcharge on electricity sent to the U.S. in response to Trumps' tariffs. The tariffs will likely have reverberations for Americans who use electricity imported by Canada, as the U.S. and Canada are each other's largest energy trade partners, according to Washington, D.C.-based research institute Center for Strategic and International Studies (CSIS).
The history of electricity trade between the U.S. and Canada
The U.S. and Canada have been trading electricity for more than a century -- long enough to have established an integrated grid, which offers a sense of security for both countries' energy needs, according to Ontario-based utilities association Electricity Canada.
The electricity interdependence between the two countries was borne out of complementary needs -- Canadians tend to use more electricity in the winter for heating, while demand is higher in the U.S. during the summer for cooling, according to Electricity Canada. An integrated grid offers strategic balance and reliability for both countries. according to the Canada Energy Regulator (CER).
Read more: https://abcnews.go.com/US/tariffs-impact-longstanding-electricity-trade-us-canada/story?id=119675864
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