The Ontario government announced it’s charging an extra 25% on all electricity exports to the U.S. Monday.

The provincial government says that’ll impact 1.5 million homes spread across Michigan, Minnesota, and New York. Ontario said that could cost up to $400,000 each day the surcharge is in place, blaming tariffs from the Trump Administration for the move.

Despite Ontario naming Michigan in its announcement, state regulators expect the move could more likely be felt on a regional scale.

“While the vast majority of Michigan’s electricity is either produced by the electric utilities or purchased under long-term power contracts, the imposition of these tariffs could have some impact on prices in the regional energy markets, though the ultimate impact on Michigan customers is likely to be small,” a written statement from the Michigan Public Service Commission read.

The agency cast doubt on whether any utilities in the state actually purchase electricity from Canada to begin with.

In a written statement, DTE Energy, one of the state’s largest utility companies, said it was prepared to mitigate any pricing concerns.

“DTE continues to monitor the evolving tariff policies with Canada.We self-generate the majority of electricity required to serve our customers’ needs, with the small amount that we do purchase coming from the United States.” DTE Energy said.

The Michigan Public Service Commission (MPSC) said “the vast majority” of the state’s electricity is produced by the state’s utilities themselves or through long term contracts.

The MPSC is warning, however, that Michigan’s electric grid is tied to several other states and one Canadian province, Manitoba. It said Michigan’s regional operator and Ontario’s regional operator coordinate that flow of electricity.

“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,” the MSPC statement said.

Brandon D. Morris is with the Midcontinent Independent System Operator, which operates Michigan’s electric grid.

“MISO is still reviewing Ontario’s recent decision to apply an export tax on electricity, which will be collected on the Canadian side of the border,” Morris said in a statement.

President Donald Trump has paused auto tariffs on vehicles imported from Canada and Mexico for one month.

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White House press secretary Karoline Leavitt made the announcement Wednesday afternoon.

“We spoke with the Big Three auto dealers. We are going to give a one-month extension on any autos coming through [the United States–Mexico–Canada Agreement],” she said. “Reciprocal tariffs will still go into effect on April 2, but at the request of the companies associated with USMCA, the president is giving them an exemption for one month, so they are not at an economic disadvantage.” 

Trump spoke with representatives of General Motors, Ford and Stellantis this week. He imposed 25% tariffs Tuesday on imports from Canada and Mexico, including vehicles. 

Those taxes would have eventually raised car and truck prices for Americans by thousands of dollars. 

Other headlines for Wednesday, March 5, 2025:

• Detroit officials will present $300,000 in grants Wednesday night for legacy businesses in the city as part of a new initiative to support small businesses, called the Detroit Legacy Business Project.
• Lafayette Coney Island has reopened after passing inspection by the City of Detroit. The legendary downtown Detroit restaurant had been closed since late January because of health code violations.
• The exterior of the new Hudson’s Detroit building has been completed after builders say the last external panel of glass was installed Tuesday.
• Gas prices in Detroit are under $3 per gallon for the first time in a while, according to AAA Michigan. Analysts say lower crude oil prices have contributed to the trend, but gas prices could rise in coming weeks because of tariffs on imports from Canada. 

Do you have a community story we should tell? Let us know in an email at detroiteveningreport@wdet.org.

President Donald Trump’s long-threatened 25% tariffs against Canada and Mexico went into effect on Tuesday. Economists warn the tax on goods could be harmful to the U.S. and its trade partners.

The measure was set to be enacted a month ago but was pushed back, as Trump warned neighboring countries to crack down on drug trafficking and illegal immigration — without laying out any specific guidance. Meanwhile, legislation in Washington has given an April deadline for agencies to review trade policies.

Dr. Rob Gillezeau, an assistant professor of economic analysis and policy at the University of Toronto in Canada, told WDET tariffs have the potential to be especially damaging to the auto industry, where parts can cross the border several times during the manufacturing process.

“The Big Three are going to be decimated,” he said. “This feels like a perfectly designed policy by the president to do as much harm to Ontario, and to Michigan, as one could imagine.”

Of the roughly $50 billion in goods that enter Michigan from Canada each year, about 55% is tied to the transportation sector, according to the Canadian Consulate General in Detroit. Gillezeau said the tariffs have the potential to cast the Canadian economy into a recession.

“I suspect it won’t be as deep as the bottom of COVID,” Gillezeau said. “It won’t be as deep as the Great Depression, fingers crossed. It will likely be deeper than every other recession that has happened to the country.”

Ontario Premier Doug Ford has threatened to turn off electricity exports from Ontario in response to the tariffs, among other steps.

Listen: Canadian economics professor discusses impacts of tariffs on US-Canada relations

Related:

• What are tariffs? And how could they affect consumers?
• Michigan Congresswoman says tariffs on Canadian and Mexican products could crash U.S. auto industry
• Experts: Effect of tariffs on Michigan economy will depend on details

The two major political parties held their conventions last weekend. On the Democratic side, former state Senator Curtis Hertel will lead the Michigan Democratic Party. He ran unopposed.

The Republican side was a bit more contentious. Former Michigan GOP Co-Chair Meshawn Maddock had gotten the coveted Donald Trump endorsement, but after a couple rounds of voting, it was current state Senator Jim Runestad (R-White Lake) that got the nod for chair.

Runestad has been in the Michigan Legislature since 2015. Before that, the White Lake resident was on the Oakland County Commission.

He tells WDET there’s still some work to be done building bridges between the various factions of the GOP.

“This internal fighting is not helpful to the ultimate goal that we’re all here, and that is winning elections for Republicans,” Runestad says.

2024 started with Kristina Karamo the MIGOP chair, but her abrasive style saw donors bail. An insurrection within the party followed and former Congressman Peter Hoekstra took over. Last year’s elections saw Republicans win back the state House, pick up a Congressional seat and Donald Trump win Michigan.

For that, Hoesktra was rewarded with an Ambassadorship to Canada by Trump.

With 25 percent tariffs on Canadian goods set to go into effect on Tuesday, relations between the two countries are at a low point. Trump has complained that Canada isn’t doing enough to stop Fentanyl from coming into the U.S.

Runestad believes the potential economic havoc on the state’s economy is worth it.

“What we’re asking [Canadian Prime Minister Justin] Trudeau is simply stop bringing over Fentanyl, stop bringing over criminal cartels, stop bringing over people that should not be here to obey our laws,” Runestad says. “Why would you not do that?”

Last year, U.S. Customs agents seized 43 pounds of Fentanyl at the Canadian border. Most drugs are brought across the border by Americans at lawful ports of entry.

2026 is going to be a wide open election cycle — with Governor, Attorney General, Secretary of State and the state Legislature all up for grabs. That’s on top of a federal midterm election and an open U.S. Senate seat in Michigan.

Typically, the party in power in Washington D.C. loses control of the U.S. House during midterms.

In Michigan, Runestad is hoping to buck that trend by following a different pattern.

“It is almost completely consistent that after eight years of one party, they want a different party in the Governor’s Mansion,” Runestad says. “I mean, it almost every time goes eight years Democrat, eight years Republican.”

Like Governor Gretchen Whitmer, Sen. Runestad is term limited. Big wins for Republicans in 2026 means Runestad likely won’t have to worry about leading his side gig of leading the MIGOP.

Hear the full conversation with Sen. Runestad using the audio player above.

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On Tuesday, President Trump’s order to place 10 percent tariffs on Chinese imports went into effect. And China was apparently ready, placing retaliatory tariffs of 15 percent on U.S. goods. 

Meanwhile, the proposed tariffs on goods from Canada and Mexico are temporarily paused after both countries agreed to send troops to their respective borders with the U.S. It’s a deal that President Trump says will help stop migrants from entering the U.S. and slow the illegal flow of fentanyl. 

Bharat Ramamurti is the senior advisor for economic strategy at the American Economic Liberties Project and a former economic communications advisor for the Biden-Harris administration. He spoke with senior producer David Leins about Trump’s tariffs, both paused and in effect.

Hear more stories from The Metro on Wednesday, Feb. 6, 2025.

Join the conversation by calling 313-577-1019 or leaving us an Open Mic message on the WDET app.

Listen to The Metro weekdays from 10 a.m. to noon ET on 101.9 FM and streaming on-demand.

Subscribe to The Metro on Apple Podcasts, Spotify, NPR.org or wherever you get your podcasts.

President Donald Trump ran on promises to shrink the federal workforce, impose tariffs, harden America’s borders and eliminate diversity, equity and inclusion efforts in the federal government. They are promises Trump appears to be making good on now.

While the country is split on Trump’s actions and policies, we’re all taking in a lot of new information. There has been a lot of confusion and fast-changing court decisions on Trump’s executive orders. 

Today on The Metro, we explore how people are navigating the news and seeking valuable information.  

Guests: 

Michael Seltzer: Franklin Village Trustee who voted for Trump. 

Emily Sydnor: Senior researcher at the Institute for Democracy, Journalism, Citizenship and teaches communications at Syracuse University.

Jihii Jolly: Freelance journalist, writer and someone who thinks a lot about media literacy.

We also asked listeners:

“How has your media diet changed over time?”

Use the media player above to listen to the full conversation.

Monday’s question: Do you watch women’s sports? 

Join the conversation by calling 313-577-1019 or leaving us an Open Mic message on the WDET app. 

More headlines from The Metro on Feb. 6, 2025: 

• Now at the Detroit Public Theatre, the stage play “Confederates” explores how history is in conversation with the present. Professor of Hip Hop Theatre Goldie E. Patrick and Philadelphia-based theatre artist Will Street joined the show to discuss. 

• The Downtown Detroit Partnership is developing a project to cap the I-75 freeway, connecting the downtown and midtown districts. The project has been in the planning stages for a while, but it recently received additional federal funding in January. DDP CEO Eric Larson joined the show to provide an update on the project.

• Bharat Ramamurti is the senior advisor for economic strategy at the American Economic Liberties Project and a former economic communications advisor for the Biden-Harris administration. He spoke with senior producer David Leins about Trump’s tariffs, both paused and in effect.

Listen to The Metro weekdays from 10 a.m. to noon ET on 101.9 FM and streaming on-demand.

The Trump administration’s 30-day pause before levying tariffs on goods from Canada and Mexico granted a kind of temporary reprieve to Michigan’s auto industry and other businesses.

During the recent campaign, President Trump vowed to help automakers by taxing products made outside the U.S. But some Michigan lawmakers question that approach.

Democratic Congresswoman Haley Stevens previously served as chief of staff for President Obama’s U.S. Auto Rescue Tax Force. She says she worries whether tariffs will produce the effect Trump says they will.

Listen: Congresswoman Haley Stevens warns that Trump tariffs could crash U.S. auto industry

The following interview has been edited for clarity and length.

Haley Stevens: One of the concerns that we have, and it’s a big one, is does this strengthen the Michigan manufacturing and automotive base? There’s a considerable amount of what we broadly call trade. But it’s imports and exports between the supply chain that exists with our auto industry into Mexico and Canada we’re concerned about.

A lot of times in Michigan we see the Ambassador Bridge between Detroit and Windsor, Ontario. We can see it as we’re driving down the road in downtown Detroit, if you’re down there for work or a concert or a sports game. People are coming over from Canada to work here, a lot of people here married Canadians and a lot of people have Canadian family. So there’s kind of that personal connection that we have.

But then there’s also the reality of the hundreds of billions of dollars that come from exchanging parts and components. And many here live and breathe the auto industry, are employed by the auto industry or working their tails off at plants and innovating and putting things together.

Plus, it’s not like the Ford Motor Company, for example, just exists as a singular entity that puts together the cars. They have to do long term purchase arrangements. They’re working with thousands of suppliers, many who are in Michigan and the industrial Midwest, and then some who are over the border in Canada.

We lived through the time when there were some massive disruptions to our supply chain because of COVID-19 and we paid a price. Remember all those cars sitting on lots because we couldn’t get microchips?

We’ve got unbelievable employment right now in the state of Michigan, it’s not that people are out of jobs or anything along those lines. But one thing that is so necessary in the auto industry is that they need certainty. They cannot just out of the blue change course because of how these production lines work, how the shipments work, and so on. The General Motors and the Fords of the world and our friends over at Stellantis, they’re looking way down the road. It’s the year 2025, but I guarantee you they’re already talking about models they’re going to make in 2030.

Quinn Klinefelter, WDET News: Some experts said they were worried, if these tariffs would go through at some point, about the potential effect on the economy. Whether it would raise the prices of products, even those made in the U.S., that have to have some parts from Canada. Or companies who use workers from there and might have to make job cuts. Do you think those are realistic possibilities, or do you think that’s being overblown?

HS: Well, President Trump put tariffs in place during his first administration, certainly not on Canada and Mexico but on China. We do need to be tough on China and President Biden kept those tariffs. But according to the Cato Institute, we saw inflation even before COVID hit, we saw prices starting to pick up. So the companies do end up passing the costs down to the consumer.

Now there’s some talk that they would collect those tariffs and use that to pay down our debt and deficit. I’m not totally sure how that would operate, but I know that’s being discussed. That could be interesting, in part because America does have a large amount of debt and we want to be a strong and secure country.

I’ve been working here in Congress for over six years and I know the debt issues preceded my time in the U.S. House and I would like to see them tackled. But what I don’t want to see is the Michigan taxpayer pay more for a car. Cars are already really expensive. I want our automakers to be as competitive as possible. I want the good work and talent that runs through our state to be able to compete and kick butt anywhere in the world.

QK: Trump often seems to operate with this type of style. He’ll sound tough at the beginning and then he backs off and will try to reach some type of a deal. Now they have this pause after he first announced the tariffs. Do you think this is proving to be an effective type of style?

HS: Time will tell. It’s certainly really chaotic. I will say I’m getting a lot of messages from analysts and people I respect and trust in the automotive space, either asking for advice or declaring that we could see plant closures. There’s absolutely a lot of chaos and confusion. And there’s questions on another front of the Trump administration, with regard to what Elon Musk is doing.

QK: What kind of advice do you give them when they ask?

HS: There’s a lot of pressure on Democrats right now to stand up and stop things from happening. That’s going to take some creativity and craftiness of approach, as well as a little bit of the long-term from the legislative standpoint. Sometimes we’ve all got to remember, don’t bury your head in the sand. I have to remind myself of this, because I’ll see these headlines come out about stuff I’m working on and they’re so dramatic. They’re just click bait or trigger bait, designed to trigger you. And it’s not healthy to be constantly in a state of panic, because you’re not in control. But we are in control of our destiny, our future, the grand dialogue of democracy. I’m not giving up and neither should anyone who is nervous right now.

Over the weekend, President Donald Trump sparked a trade war with the United States’ two closest trading partners — Canada and Mexico — by threatening to lobby 25% tariffs on goods crossing the border.

Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum responded in kind.

Trump has already backed down on the tariff with Mexico following a conversation with Sheinbaum. The tariff was put on hold for a month to allow for negotiations.

Trump claims the tariffs were needed to stop the flow of deadly Fentanyl from going across the border.

Sheinbaum committed to sending National Guard troops to help, while getting Trump to concede that the U.S. needs to do a better job of preventing guns to cross the border into Mexico.

It’s unclear how much the border troops will stop the flow of Fentanyl, since most of the drug comes into the U.S. via personal cars driven by Americans.

Sheinbaum has also taken a harder line on Fentanyl-making cartels than her predecessor — and along with changes in strategy by the Biden administration — the number of overdose deaths in the U.S. has been dropping.

Even if you believe Fentanyl smuggling is the main reasons for Trump’s tariffs, that doesn’t explain the levy on Canada. Just 1% of the Fentanyl brought into the U.S. comes across the Canadian border.

Many economists are trying to figure out the endgame. That includes Jim Stanford, the director of the Centre for Future Work.

Canada doesn’t supply a lot of finished products to the U.S. so it’s not like American consumers can just avoid buying Canadian products.

“It’s actually American businesses that are going to feel the pinch first,” Stanford said. That’s what makes it so puzzling that the U.S. government would do this.”

For the auto industry, Michigan and Ontario are tightly linked, with auto parts often crossing the border several times before a car is fully built.

Right now, it remains unclear just how the tariffs will be implemented.

“You could pay a 25% tariff on the steel, and then a 25% tariff when the steel comes back in a semi finished product, and then another 25% tariff when it’s fashioned into a transmission or something, and then another 25% tariff when the finished vehicle crosses the border,” Stanford said.

“Add all that up, and it’s going to be a catastrophe for the auto industry.”

It’s possible — maybe even likely — that Trump will back off the tariffs like he did with Mexico.

However, the chaos these tariffs are causing might be the point.

“It would still be a permanent change in the outlook of business of any nationality towards where they’re going to locate their facilities,” Stanford said.

And if the tariffs are fully implemented?

“From groceries to energy to vehicles — get ready for higher prices.”