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Tariff impacts in Michigan: Canada moves forward with 25% surcharge on energy

DETROIT (FOX 2) - Half a trillion dollars in trade between the U.S. and Canada and a good chunk of that crosses the Ambassador Bridge between Detroit and Windsor daily. Big picture view Meanwhile, as the Trump Administration and Canada discuss the threat of tariffs on goods and services, Ontario is moving forward with a 25% surcharge on energy exports. Ontario's Minister of Energy and Electrification, Stephen Leece, talked with FOX 2 about the recent decisions. "The point is to demonstrate to the President that we mean business," Leece said. "To stand up for ourselves against an illegal attack on an agreement he signed with Canada and Mexico only a few short years ago. Nine million Americans woke up this morning because of the Ontario economic relationship with the U.S. We say this with regret. We don't want to do this. I'd rather be selling more power and working together." By the numbers Ontario's tariff means a 25% surcharge on every megawatt sold to its U.S. customers—notably in New York, Minnesota, and Michigan. The Michigan Public Service Commission says this may impact prices in our state's regional markets. The commission also said it's concerned about whether the tariff could hurt grid reliability in the states. They wrote in a statement: "Any action to limit or disrupt these flows would remove a layer of protection and make all of us—Canadians and Americans alike—more vulnerable to grid-scale outages." Dig deeper Chris Kobus, Oakland University's associate professor of energy, says while the tariff talk makes headlines, he believes the impact will be minimal in Michigan. "As much as we have a net use for Canada's electricity, going the other way around, they have a net use," said Kobus. "We give them quite a bit of natural gas. They start charging more for electricity. We're going to charging more for natural gas." "As soon as the Trump administration can come to you all and say, 'hey, we want to end these tariffs.' The energy tariff goes away immediately? Am I correct in saying that?" FOX 2's Brandon Hudson asked Leece. "We will drop the surcharge as soon as the tariffs are off the table," Leece responded. Local perspective FOX 2 also reached out to DTE, and they said the tariff would not impact their company or its customers.