A new tax on electricity exports from the Canadian province of Ontario to the United States came into effect today, in a move aimed at boosting provincial revenue and protecting local energy sector interests. This tax is expected to generate up to $400,000 daily for the Ontario treasury, according to Canadian media reports.

The new tax targets American companies that import electricity from Ontario, which heavily rely on Canadian supplies to meet their energy needs. The Ontario government clarified that the imposition of these fees aims to ensure that residents of the province benefit directly from local electrical resources while providing greater protection for local producers against market disruptions.

Officials in the Ontario government confirmed that this step is part of a broader strategy to enhance energy security in the province and to ensure that electricity is not exported at low prices to the detriment of local consumers. They also noted that the expected revenues from this tax will be used to support infrastructure projects in the energy sector.

In contrast, this move has drawn criticism from the United States, where American officials warned that this tax could lead to increased electricity prices in some U.S. states and exacerbate trade tensions between the two countries.

This decision comes amid escalating trade disputes between Canada and the United States, with both parties imposing trade tariffs on a number of goods and services. This tax on electricity is the latest step in a series of measures reflecting the instability in economic relations between the two sides.