Canada Hits Michigan And Ohio With 25% Electricity Tariffs

The Canadians have decided to get out in front of what could become the most challenging parts of the trade war with the US. It has placed 25% tariffs on electricity in Michigan, Minnesota, and Ohio, and as many as 1.5 million homes and businesses will be hit. The daily cost to these customers could total $400,000.

According to The Hill, Ontario has imposed the tariff. It reported, “We will not stand by as our vital electricity exports are taken for granted,” said Stephen Lecce, head of Ontario’s Ministry of Energy and Electrification. The plan is part of a much wider dispute that could see the US impose 25% tariffs on Canadian imports. Canada will retaliate.

China Tariffs As Well

The news is part of what could be a nearly global web of tariffs. The US said it may impose 25% tariffs on Mexican imports, and tariffs on Chinese goods could be 10% or higher. China recently announced that it would impose tariffs on agricultural goods that come from America.

Economists said the tariff turmoil could cause a recession. Stock markets have sold off in the last two weeks on the anxiety, and there is worry the correction will pick up speed.

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