CBS 6 News: Trump’s Canada tariff may spike NY electricity, gas prices, experts warn

February 3rd, 2025

February 3, 2025

Watch the piece by Briana Supardi here.

ALBANY, N.Y. — President Trump’s 10-percent tariff on Canadian energy, set to take effect Tuesday, is expected to impact New York State, where a substantial portion of energy supply is sourced from Canada. Experts warn that the tariff could lead to increased costs for electricity and gas, affecting both consumers and businesses.

Justin Wilcox, executive director of Upstate United, said, “We could certainly see higher energy prices. I think that’s one of the reasons why you saw energy singled out with a lower tariff. Because I think there’s an acknowledgment of how critical Canadian energy is to the U.S. economy and the impact that could have on consumers and businesses alike.”

Canadian hydropower plays a crucial role in New York’s electricity supply, particularly in regions like the North Country and New York City. Despite the United States being a net exporter of crude oil, it heavily relies on Canadian crude due to its specific composition.

Gregory Nowell, an associate professor of political science at UAlbany’s Rockefeller College of Public Affairs and Policy, said, “There isn’t an immediate cost substitutability between what we import and what we export, even though right now America is a net exporter. I would anticipate an increase in prices on gasoline.”

Governor Kathy Hochul expressed concern over the potential rise in gasoline prices, stating, “I wouldn’t be surprised if the cost of gasoline goes up tomorrow.”

“I cannot overstate how bad this is for New York,” she added.

The New York Independent System Operator (NYISO) is responsible for managing the state’s electricity grid and wholesale electricity markets.

Kevin Lanahan, Vice President of External Affairs and Corporate Communications with NYISO offered the following statement.

“The NYISO is actively pursuing guidance pertaining to the impact on electricity markets and which Canadian energy resources qualify. We will communicate to all stakeholders as soon as we receive clarification. The U.S. and Canada have one of the most integrated electric grids in the world, allowing system operators in both countries to pool resources for improved reliability and economic efficiency. We are in close and regular contact with Hydro Quebec and Ontario’s Independent Electricity System Operator to ensure a reliable grid and stable flows of electricity across interregional transmission lines.”