Minnesota faces energy surcharges due to Trump trade war

In March 2025, Minnesota, along with Michigan and New York, was warned about a potential 25% surcharge on electricity from Ontario amid ongoing tariff disputes facilitated by United States President Donald Trump. Ontario Premier Doug Ford publicly stated that if the surcharge occurs, residents of Minnesota should not blame him but rather contact Governor Tim Walz. This statement follows a tense trade environment impacted by Trump's tariffs aimed at pressuring Canada and Mexico to address various border-related issues. Ontario is a crucial player in Canada's economy, often exporting electricity to various U.S. states. However, energy experts, including representatives from Xcel Energy and the Minnesota Rural Electric Association, indicated that the tariffs would have minimal impact on Minnesota's electricity rates since they do not rely on direct imports from Ontario. Walz emphasized the importance of the partnerships that contribute billions to the economy while highlighting the unique dilemma faced due to the tariff threats. Ford noted that while Canada has been enhancing border security, these tariffs were implemented as a strategy by the Trump administration to press Canada and Mexico into compliance regarding immigration control, particularly concerning undocumented immigrants and the trafficking of substances like fentanyl. The communication between governors underscores the collaborative efforts against the backdrop of tariffs that could disrupt energy trade. After President Trump postponed the tariffs for one month, the situation remains fluid, with potential implications for future political and economic relations between Canada and the U.S.