When President Donald Trump’s administration announced on March 3rd that it was I’ll move forward The tariffs on Mexican and Canadian goods were wiped out, causing rage above the northern border and confusion below it between the organisations that manage some of the electrical grids in both countries.
And Trump has been around since then I pulled back About customs duties on certain products from Canada and Mexico Postpone other people Until April 2nd, the move owns uncertainty about what electricity tariffs mean, or none at all.
Premier Dougford, Ontario I said He will implement an additional 25% charge for electricity exports from Ontario and consider pulling electricity to Michigan, New York and Minnesota if the tariff war escalates.
Trump has imposed a 10% tariff on Canada’s “energy and energy resources.” Previous Free Trade Agreement. But a pair of trade analysts at the global law firm White & Case I wrote it The administration does not provide a customs schedule code to lay out those eligible under those conditions.
A spokesman for the US International Trade Commission, a federal agency that maintains the US tariff schedule and provides information on tariffs, trade and competitiveness, told the state newsroom that Trump’s tariffs would not apply to electricity.
The spokesman is reporter Harmonized tariff schedule The United States, marked “is subject to the admission requirements for imported goods listed in Section 484 of the Customs Act of 1930” (which defines the duties and categories of all goods imported into the country)
However, some local transmission organizations that manage electrical grids in parts of the US and Canada have laid the foundation for the possibility of collecting electricity obligations.
New England coordinates the flow of power in Maine, New Hampshire, Vermont, Massachusetts, Connecticut and Rhode Island. 15 million peoplesaid 9% of New England’s electricity demand was met with imports from Canada and New York. Over 5% of the total demand is provided by imports from Canada.
“We do not believe that tariffs imposed on Canadian imports will apply to electricity based on legal precedents, but we are seeking additional guidance,” said Mary Kate Corapietro, spokesman for the organization.
New England ISO with counterparts running the grid in New York I did a file With the Federal Energy Regulation Commission to prepare for potential electricity bills. While I don’t think tariffs apply to electricity, the organization said it needs to be submitted “in light of the uncertainty surrounding these issues” to ensure that the process is in place if the Trump administration decides it applies to power from Canada.
“We expect that whether or not tariffs are in place on Canadian electricity will affect prices at the wholesale level,” Corapietro said. “The scope of impact depends on several factors, including the import level, whether those resources are setting market prices, and the terms of long-term contracts.”
Midcontinent Independent System Operator spokesman or MISO, Run the grid In all or part of the 15 US states in Canada, Manitoba and from the Canadian border to the Gulf Coast, the organization said it was unclear whether it would be forced to collect electricity bills. Ajio serves a population of around 45 million people.
“This is a fluid situation and it is unclear whether US import duties will apply to imports of electricity from Canada, and it is unclear whether this will be resolved,” said Brandon Morris, a spokesman for MISO. “MISO has not received confirmation from federal agencies about the applicability of its obligations to electricity or who will be responsible for payment or collection.”
Morris said less than 1% of the total energy of the 2024 flavor o was supplied via Canadian imports. Less than half of that came from Ontario, he added.
“In context, that amount corresponds to about one power plant,” he said.
Megan Sabe, a spokesman for Southwest PowerPool, is another regional transmission operator that coordinates a grid of 19 million people in Central America, including parts of Oklahoma and Texas or all 14 states from the Canadian border, and said the organization’s “reliance on imports from Canada is small enough.”
What impact will tariffs and reductions in Canada’s power have?
Kimberly Meer Kalek, vice president of North American Electric Reliability Corporation, which sets and implements standards for bulk power systems in the US, Canada and Mexico, said more than 31 transmission lines will link the US with Canada.
“Trans-border power transfer is valuable for reliability, as free flow of electricity offers the flexibility to operate during periods of greatest needs, particularly to manage seasonal peaks,” she said.
With the US and Canada’s electrical systems being managed as a single grid and deeply intertwined for decades, it’s difficult to figure out how many Americans are empowered from Canada.
“We are pleased to announce that we are a great opportunity to develop a new approach to electricity policy consulting firm Rob Gramlich, president of Grid Strategies. “All continental US states except Texas are part of the integrated grid with Canada.”
Generally speaking, the closer you are to the border, the more likely a particular community will depend on Canadian power. But that electricity range can go far further, Gramrich said.
For example, hydroelectric power in British Columbia and solar power in California “balance each other every day,” he said.
By inserting tariffs into finely tuned operations of electric grids that require supply-to-demand matching in real-time, with the aim of ensuring customers get the cheapest generation, you can create “complete confusion” at the time the invoice is invoiced, and you can impose a large cost on your electric customers. Already spikedGramrich said.
“It could send electricity every hour, and it could lead to much less efficient delivery of the system,” he said. “You’re dismantling the integrated machines and imposing significant friction within the machines. This is a system that’s too sensitive to impose policies on these systems that no one thinks.”
Last updated at 12:39pm, March 10th, 2025
