Ontario Hits MN With 25% Electricity Tariff: Here's What That Means

MINNESOTA — Minnesotans could see their electric bills go up after Ontario on Monday slapped a 25 percent tariff on Canadian-produced electricity flowing into Minnesota and two other states.

Ontario also provides electricity to Michigan and New York.

The Canadian measure comes in direct response to President Donald Trump's tariffs on Canadian goods. Trump originally imposed a 25 percent tariff on most imports from Canada and Mexico last week, but paused them on Thursday for one month.

"I will not hesitate to increase this charge. If the United States escalates, I will not hesitate to shut the electricity off completely," Ontario Premier Doug Ford said at a news conference in Toronto. "Believe me when I say I do not want to do this. I feel terrible for the American people who didn't start this trade war. It’s one person who is responsible, it’s President Trump."

What It Means For Minnesota

The impact is still unclear. But Minnesota is part of the Midcontinent Independent System Operator (MISO) grid, which manages electricity across multiple U.S. states and parts of Canada.

While the state gets some electricity from Ontario, Minnesota has a diverse energy mix, including renewable energy, coal, natural gas, and nuclear power, which will help cushion the impact of the tariff.

The new 25 percent tariff on Ontario electricity exports could increase costs for utilities that purchase Canadian power, but Minnesota has many other sources of electricity.

The Duluth News Tribune reported that while Minnesota is connected to Ontario’s grid, utility company Minnesota Power purchased less than $310,000 worth of electricity from Ontario in 2024, and none at all for eight months of the year.

However, the situation is quite different in Manitoba. Minnesota Power purchased a substantial $108 million on electricity from Manitoba Hydro last year.

"Minnesota Power has an electric grid connection with Ontario, and on occasion, we do utilize electricity from their system," Minnesota Power spokesperson Amy Rutledge told the newspaper.

"However, it is not on a daily basis like our contracted electricity from Manitoba Hydro."

Further Tariffs On Oil

Ford also called on the Canadian province of Alberta to put an export tax on oil. Alberta provides 4.3 million barrels of oil a day to the U.S., with the bulk going to the Midwest, including Minnesota.

Residents in those state can see a direct impact in the form of higher oil and energy costs.

"You want to talk about a Trump card. That will instantly change the game," Ford said. "I know the Americans. If all of a sudden their gas prices go up a dollar a gallon they will lose their minds."

The Associated Press contributed to this report.