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A new tax on electricity exports from Ontario to the United States comes into effect today amid an ongoing trade war.

A new tax on electricity exports from Ontario to the United States comes into effect today amid an ongoing trade war.

By م.زهير الشاعر

Published: March 10, 2025

A new tax on electricity exports from the Canadian province of Ontario to the United States came into effect today, in a move considered an escalation in the ongoing trade dispute between the two countries. This tax aims to impose additional fees on the quantities of electricity exported from Ontario to U.S. states, as an attempt by the Canadian government to respond to the trade measures recently taken by Washington.

This step comes amid rising trade tensions between Canada and the United States, where recent times have seen reciprocal tariffs imposed on a number of goods and products. The Ontario government confirmed that this tax aims to protect the local energy sector and ensure that the electricity production capacities of the province are not exploited at the expense of local consumers.

For its part, the United States criticized this move, considering that it could lead to increased energy costs for American consumers and worsen trade disputes between the two countries. Energy sector experts also warned that this tax could negatively impact economic relations between the two sides and lead to a reassessment of energy-related trade agreements.

These developments are expected to further complicate trade relations between Canada and the United States, at a time when both governments are seeking to find compromises to ease the ongoing trade disputes.

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