Ontario's premier said the province is increasing electricity rates by 25 per cent for 1.5 million American homes and businesses starting Monday in response to President Donald Trump's trade war.
Ontario, Canada's most populous province, provides electricity to Minnesota, New York and Michigan.
Quebec is also considering introducing similar measures on electricity exports to the United States.
“President Trump's tariffs are a disaster for the U.S. economy. They raise the cost of living for American families and businesses,” Ontario Premier Doug Ford said.
“Until the threat of tariffs is finally removed, Ontario will not back down. We will stand our ground, use every tool at our disposal, and do everything we can to protect Ontario.”
Mr. Ford stressed that Ontario's tariffs would remain in place despite the month-long reprieve granted by Mr. Trump, noting that the temporary pause only created more uncertainty.
Mr. Ford's office said new market rules require any generator selling electricity in the United States to add 25 percent to the tariff.
The Ontario government predicts this will generate revenue of C$300,000-400,000 (£161,200) a day, “which will go towards supporting Ontario workers, families and businesses”.
Mr Ford estimated this would increase each affected American's bill by about $69 (£53.54) a month.
“This has to stop. Until these tariffs are removed, until the threat of tariffs is gone forever, Ontario will not give in,” Mr. Ford said.
Mr. Ford noted that Mr. Trump changes his mind daily, but if he continues to attack Canada, he will do everything possible to cause maximum damage.
“Republicans, at least the ones I talk to, disagree with President Trump, but they are too scared to voice their opinions publicly,” Mr. Ford said.
“It's shameful, but we have to put an end to it.”
The new surcharge is in addition to the federal government's initial C$30 billion (£16.3 billion) retaliatory tariffs on goods including US orange juice, peanut butter, coffee, household appliances, footwear, cosmetics, motorcycles and certain pulp and paper products.
Last week, Trump launched a new trade war by imposing tariffs on three of the US's largest trading partners, prompting immediate retaliation from Mexico, Canada and China and sending financial markets tumbling.
Trump later said he had delayed the imposition of 25 percent tariffs on many goods from Canada and Mexico for a month amid widespread fears of a wide-ranging trade war.
Sourse: breakingnews.ie