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US-Canada Trade War Threatens Electricity Imports, Prices
A trade war between the United States and Canada is threatening to impact the electric power sector. Canada is considering retaliatory tariffs on U.S. goods, including potential tariffs on electricity exports. Ontario's Premier has indicated that halting electricity exports is under consideration. In a previous trade dispute, Ontario had imposed and then quickly removed a tariff on power exports. ISO New England stated that it does not anticipate reliability issues from reduced Canadian imports under normal conditions. However, supplies could become tight during extreme temperatures, depending on various factors. The grid operator also noted that power flows both ways and impacts would likely be financial with increased wholesale prices and regional emissions. The U.S. Energy Information Administration reports significant value in electricity trade between the two countries, with the majority being imports from Canada. Despite the overall value, electricity trade is relatively small compared to other energy sources. The electricity sectors are increasingly intertwined, with new transmission lines facilitating Canadian hydropower to the U.S. New York's grid operator is in contact with Canadian counterparts and anticipates adequate supplies to meet demand.