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Trump’s Energy Price Hike: Nonsensical Trade War Set to “Spike” Domestic Energy Prices

Press Contact: Seth Nelson

A new report from the Atlantic Council, highlighted in The Independent, warns that Trump’s latest tariffs on energy imports from our closest trading partners will likely “spike” domestic energy prices, particularly in the Midwest. Trump’s nonsensical trade war threatens to drive up prices across the board—from prices at the pump to household electricity and gas bills. And potential retaliatory measures could make things even worse for American families already struggling to keep up. Ontario’s leader, for instance, is considering cutting off the province’s energy exports to the U.S. The bottom line: Despite Trump’s repeated promises to slash energy prices in half within a year, his tariffs are doing the opposite—driving them up.

ICYMI: The Independent: ‘They need to feel the pain’: Canadian lawmaker threatens to switch off energy to US over tariffs war

By: Ariana Baio
March 4, 2025

Key Points:

  • The leader of Ontario threatened to cut off Canada’s energy supply from the United States, remove all U.S. alcohol from store shelves and cancel any partnership with Starlink in retaliation for President Donald Trump imposing sweeping 25 percent tariffs on the U.S.’s northern neighbor and 10 percent tariff on Canadian energy.

  • “If they want to try to annihilate Ontario, I will do everything – including cut off their energy, with a smile on my face,” Ford said.

  • Canada is the largest source of energy imports for the U.S., with crude oil and other petroleum products topping the list of imports. But hydropower, natural gas and electricity are also among the imports.

  • Imposing the 10 percent tariff [...] will likely “spike” domestic energy prices, “especially in states in the U.S. Midwest,” according to the Atlantic Council.

  • “They rely on our energy; they need to feel the pain,” Ford said while encouraging all other provinces, such as Quebec, Manitoba and British Columbia, to do the same.

  • Premier of Quebec François Legault said in February that he agreed with Ford about implementing retaliatory energy measures on the U.S. if Trump were to impose tariffs. He reiterated that point on Monday, saying he would respond in retaliation with Hydro-Quebec, the largest supplier of hydropower in Canada, which also exports power to the northeast U.S.

  • “I can’t, for the life of me, figure out why this guy’s attacking his closest neighbors, allies and friend. A tariff on Canada is a tax on Americans,” Ford said of the president.


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