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How Trump’s trade war could impact electricity prices and state climate plans

On Tuesday, President Donald Trump began a trade war with Canada and Mexico, the largest commercial partner in America. After that in weeks of threats, 25 percent imposed on the goods imported from Mexico, Canada and less 10 percent tariffs On the imports of Canadian energy resources.

Soon the leaders of Canada and Mexico were struck. Canadian Prime Minister Justin Trudeau revealed An immediate tariff of 25 percent The goods are worth $ 20.5 billion from the United States and promised to extend the tax to another $ 85 billion in late March. Mexican President Claudia Shinbom Declare It also planned to reveal the revenge definitions next Sunday.

Trump’s tariff, which is widely expected to raise prices for American consumers, also introduces the American electricity market to raise. All energy networks in the United States with the exception of Texas have a level of intercourse with networks in Canada, the largest energy supplier to the United States

Historically, the United States imported nearly twice the power of Canada as much as it is issued there, although this percentage has begun to turn in recent years Slowness of the electrical energy output In provinces like Quebec and Ontario. some 98 percent From the imports of natural gas in America, and 93 percent of electricity imports – Many of this from the electrical dams – comes from Canada.

America’s dependence on Canadian power is not distributed evenly. Northern energy networks generally depend on Canada’s energy resources for southern networks because of their geographical proximity to Canada. It also entered states like New York and Minnesota Energy market agreements With Canadian provinces to receive hydroelectric energy in order to achieve the goals of ambitious and speed climate change.

From Canada’s point of view, blocking or imposing taxes on energy exports to the United States is an effective compromise chip – perhaps one of the most powerful country. “I see energy as the Queen of Canada in this chess game,” Andrew Fawry, Prime Minister in Newfoundland and Labrador, He said in JanuaryWhen Trump has not yet followed his threat of Canadian tariffs. Fawry’s boycott is one of the five that supplies the United States using hydroelectric energy.

Niagara is on the border between Canada and the United States as a major source of electrical energy for the region.
John Moore Pictures

In the evening before the definitions, Doug Ford, Prime Minister Ontario, Doug Ford, Threatened to cut power exports To the United States, a complete stop “with a smile” if Trump continues to target Canada with definitions.

On Tuesday, Ford announced Export tax of 25 percent On the authority of the Ontario ships via transport lines to 1.5 million homes in three states – Michigan, Minnesota, and New York – she said that the fully export ban was still on the table.

All three states affected by export taxes in Ontario have climatic targets on books that depend on some management of electrical energy. Minnesotaand MichiganAnd New York All of them aim to achieve clean electricity networks by 2040. Michigan depends largely on its electrical facilities, but Minnesota and New York depend on varying degrees on Canada to reach its goals.

Experts told Grist that it is too early to determine what is Trump’s tariff, and Ford’s reprisal measures, meaning for the goals of these climatic states – and their inhabitants. Daniel said. “When you add unnecessary friction to the market, you will of course see an increase in prices.” “The definitions will flow to the consumer, either directly or indirectly.” Zarli noted that it is not clear how these prices can appear in the prices, which it will carry – who – who – the price motivated, auxiliary tools, or a mixture of actors – can look.

The trade war may be particularly feeling in New York, where the developers are Extension of the transport line From Quebec to Queens to pump the electrical energy that is needed in New York City. Once Champlin Hudson Power Express operates in 2026, New York City included electrical energy during the summer months. However, it does not guarantee this reliable power during the winter.

Since the state has broken its power network, The demand for energy increases during the cold weather months. Now the New York power network operators are preparing to order during the winter season Double for the next thirty years. But whether the state gets the electrical energy it needs to provide a reliable and renewable force during this peak, the demand now depends on how the trade war appears.
“The repercussions may be catastrophic in reality,” said Adrian Esposetto, CEO of the Non -Percient Citizens Campaign, which helped pushing New York City to adopt a climate plan. It reflects the state. “He challenges logic.”


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