Washington, D.C. – President Donald Trump unleashed a fiery rebuke of Canada’s newly implemented 25% surcharge on electricity exports, branding it an “unfair trade practice” and promising swift retaliation with reciprocal tariffs set to take effect on April 2. The escalating rhetoric signals a fresh chapter in the ongoing trade friction between the United States and its northern neighbor, raising concerns about economic fallout on both sides of the border.
In a strongly worded statement issued from the White House, Trump accused Canada of exploiting the U.S. through longstanding trade imbalances.
“Canada is a Tariff abuser, and always has been,” he declared. “They slap 250% to 390% tariffs on our farm products, and now they want to gouge us with a 25% electricity surcharge. Because our Tariffs are reciprocal, we’ll just get it all back on April 2. The United States is not going to be subsidizing Canada any longer.”
The electricity surcharge, announced by Canadian officials earlier this month, aims to offset rising domestic energy costs and bolster Canada’s renewable energy initiatives.
However, the move has drawn sharp criticism from U.S. policymakers, particularly in border states reliant on Canadian power imports. Trump’s response suggests a broader retaliatory strategy, as he hinted at targeting key Canadian industries beyond electricity. “We don’t need your Cars, we don’t need your Lumber, we don’t need your Energy,” he warned, adding ominously, “and very soon, you will find that out.”
Trade experts view the president’s comments as a signal of potential tariffs on Canadian automotive, timber, and energy sectors—industries that collectively account for billions in cross-border commerce. In 2024 alone, Canada exported over $15 billion in electricity to the U.S., alongside significant volumes of lumber and vehicles. Any reciprocal measures could disrupt supply chains and raise costs for American consumers, while delivering a sharp economic blow to Canada.
The timing of Trump’s April 2 deadline has sparked speculation about its alignment with broader U.S. economic policy reviews, including renegotiations of the USMCA trade agreement.
For now, the White House appears resolute. Trump’s vow to “get it all back” demonstrates his administration’s aggressive stance on trade reciprocity, a hallmark of his economic agenda. As April 2 looms, businesses and lawmakers on both sides of the border brace for the fallout, with the potential for negotiations—or further escalation—hanging in the balance.