Tariffs On Electricity May Hit Michigan, New York, And Minnesota

Doug Ford, the Prime Minister of Ontario, said he may completely cut the flow of electricity from his province to the US. This is in reaction to the 25% tariffs President Trump planned to put on imports from Canada. While that will not happen, Canada may put tariffs on the electricity it sends to Michigan, New York, And Minnesota.

Ontario Supply

“I love Americans. It’s been 20 years of my life. But in saying that, no, we’re going to put a 25 percent tariff on electricity coming from Ontario to Michigan, New York and Minnesota,” Ford said during a Thursday appearance on Fox Business Network. His major anxiety about the tariffs is that it may ruin the families’ finances on both sides of the border.

Winter Cold

Electricity tariffs could also hit families in the three states. American Electric Power provides most of the electricity to Ohio. DTE is the largest supplier to Michigan, and Xcel Energy and Connexus Energy are the largest electricity providers in Minnesota. It is unclear what tariffs would do to their finances and what kind of losses they might face. It is also unclear if they can pass these increases in cost to customers quickly or whether they need to clear them through regulatory bodies.

The three states are among the coldest during the winter. Therefore, they would affected by increases in electricity costs almost immediately, 

Electricity, unexpectedly, has become a chess piece in tariff negotiations. The Trump Administration has pulled back some tariff plans. That does not mean the disputes are over.

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