CommonWealth Beacon

By Joe Curtatone

Driving up the cost of hydroelectricity will consumers in the Northeast hard and set back our climate goals

THE IMPOSITION OF tariffs on energy imports from Canada jeopardizes both our climate targets and the economic security of millions of residents and businesses across New England and New York.  

President Trump has imposed broad 25 percent tariffs on Canadian imports. It remains unclear whether these tariffs apply to electricity (the Trump administration issued no clarification), an intangible good that has never before been subject to import duties.  

The Northeast has long been a leader in clean energy innovation, setting ambitious goals to transition to a more sustainable, affordable, and reliable power grid. Tariffs of this magnitude on clean Canadian electricity imports are a direct attack on affordability, burdening US consumers with an estimated $400 million in additional costs annually.

These tariffs will be felt particularly during peak-demand periods, when the Northeast’s reliance on Canadian electricity is most acute. During these hours, tariffs could increase wholesale electricity prices by up to 30 percent. These costs disproportionately affect working families and small businesses that are already struggling with high energy costs.

At a time when states like Massachusetts and New York are working to expand clean energy infrastructure and reduce reliance on fossil fuels, the artificial price increases from tariffs will drive clean and affordable hydroelectricity from Canada out of energy markets. The result is the opposite effect of what our state policies seek and instead will drive up costs and push the region further into dependence on natural gas and oil.

Massachusetts alone is expected to see a $200 million increase in electricity if 25 percent tariffs are imposed on Canadian electricity imports.  

Beyond the financial impact, tariffs will undermine the reliability of the Northeast’s power grid. Just this year, during the coldest periods of January and February, Canadian energy exports accounted for 10 percent of New York’s demand and 15 percent in New England, rising to 20 percent during peak-demand hours.  

With the added tariff costs on imports, our region will inevitably rely more heavily on fossil fuel plants that are vulnerable to fuel supply shortages and price spikes during extreme weather events. The energy market works by selecting the least expensive form of energy available to provide the required amount of energy demanded by the market. If tariffs make otherwise affordable Canadian hydroelectricity more expensive than oil and gas, the market will choose those less costly sources.

Some parts of our region are especially vulnerable. Certain rural areas in Vermont and Northern Maine, which are directly linked to electric grids in Canada and have no viable alternative supply, could be hardest hit. Tariffs could lead to millions of dollars in increased costs annually, exacerbating energy insecurity for residents who already face higher-than-average electricity prices.

Imposing tariffs on Canadian hydroelectricity is not just bad economics—it’s bad climate policy. With the withdrawal of this affordable, clean energy source, the region will be forced to burn more natural gas and oil, leading to an estimated 10 million additional tons of carbon emissions annually — annual emissions equivalent to those emitted by every car registered in New York City.  

This is a step backward at a time when we should be accelerating our clean energy transition. The Northeast has set aggressive goals to cut emissions and transition to 100 percent clean power, yet these tariffs will make clean energy less competitive, slowing progress toward a carbon-free grid.

Supporters of these tariffs argue that they will level the playing field for domestic energy producers but, in reality, they will undermine the market forces that are driving innovation and competition in the clean energy sector.  

They completely ignore the interconnected nature of the US-Canadian electricity system, which has historically provided economic, reliability, and environmental benefits to both countries. Just last week, New York State released a report assessing tariff impacts. State agencies conclude that “losing access to Canadian imports during the peak summer cooling months could create significant reliability challenges.”

New York and New England cannot afford to let anything but the public interest and cost dictate energy policy. These tariffs will raise prices, reduce reliability, and set back the clean energy transition at a time when we need to accelerate progress, not stall it.

Governors, legislators, and regulators in the Northeast must visibly stand together against these tariffs, advocating for continued access to affordable, clean electricity. Businesses, labor groups, and community organizations must also speak out, making it clear that these policies will harm local economies, cost jobs, and increase energy burdens for working families.

Joe Curtatone is president if the Alliance for Climate Transition.