Fact Check: It is illegal for Canada to put 25% surcharge on Electricity to the US

Fact Check: "It is illegal for Canada to put 25% surcharge on Electricity to the US"

What We Know

The claim that it is illegal for Canada to impose a 25% surcharge on electricity exports to the United States is misleading. In March 2025, Ontario's Premier Doug Ford announced a 25% surcharge on electricity exported to the U.S. as a retaliatory measure against U.S. tariffs on Canadian metals, specifically targeting states like Michigan, Minnesota, and New York (AP News). This move was framed within the context of ongoing trade tensions between the two countries, particularly under the Trump administration's aggressive tariff policies.

The legality of such a surcharge is not straightforward. The Canadian government has the authority to set tariffs and surcharges on its exports, including electricity. The claim that it is illegal does not take into account the legal frameworks governing international trade and energy transactions, which allow for such actions under certain circumstances (Truth or Fake).

Analysis

The assertion that it is illegal for Canada to impose a 25% surcharge lacks a solid legal basis. The Ontario government, as part of its provincial jurisdiction, can impose tariffs on electricity exports as a response to external trade pressures. This action is consistent with the rights of sovereign nations to protect their economic interests in the face of international trade disputes (WKRG).

Critically, the claim appears to stem from a misunderstanding of international trade law and the rights of provinces within Canada. While the legality of such surcharges can be challenged in international trade forums or through negotiations, the immediate authority to impose them lies with the provincial government. Furthermore, the situation is fluid; shortly after the announcement of the surcharge, Premier Ford indicated that it would be suspended in response to evolving negotiations with the U.S. government (Independent).

The sources used to support the claim of illegality do not provide a comprehensive legal analysis or cite specific laws that would render the surcharge illegal. Instead, they focus on the political implications of the tariff actions (USA Today).

Conclusion

Verdict: False

The claim that it is illegal for Canada to impose a 25% surcharge on electricity exports to the U.S. is false. The Ontario government has the legal authority to implement such surcharges as part of its trade policy, particularly in response to tariffs imposed by the U.S. While the legality of these actions can be contested in international trade discussions, they are not inherently illegal under existing trade laws.

Sources

1. Doubled Tariff on Canadian Metals Abruptly Called Off
2. Ontario slaps 25% tax increase on electricity exports to US in response ...
3. Fact Check: It is illegal for Canada to put 25% surcharge on ...
4. Canada slaps electricity tariffs on New York, Minnesota ...
5. Electricity from Canada: Surcharge suspended by Ontario for US states
6. Ontario suspends 25% surcharge on all U.S. electricity ...
7. Canada backs down on 25% charge for electricity exports
8. Applying a 25 Per Cent Electricity Surcharge on Exports to United