President Trump’s tariffs on Canadian and Mexican imports, effective March 2025, are raising electricity and gasoline costs, significantly impacting businesses and consumers, particularly in U.S. border regions as Canada. As energy markets are deeply interconnected, these policies create widespread economic and operational challenges.

Rising Energy Costs

Ontario has imposed a 25% surcharge on electricity exports to the U.S., affecting key states such as Michigan and New York. With these states heavily reliant on imported electricity, businesses and households could see an increase of up to $100 per month in energy bills. Additionally, Ontario has warned that it may entirely halt exports if trade tensions escalate, further straining supply and increasing energy instability.

On the fuel side, the U.S. has implemented a 10% tariff on Canadian crude oil imports. Since Canada supplies a significant portion of crude oil to U.S. Midwestern refineries, this move is expected to push gasoline prices up by as much as 50 cents per gallon. This rise affects transportation costs, impacting logistics, supply chains, and the overall cost of goods and services.

Potential Water Utility Impact

While tariffs do not directly target water utilities, higher energy costs could significantly increase operational expenses for water treatment facilities. Energy-intensive processes such as pumping, filtration, and purification rely on electricity and fuel, meaning higher costs could translate into increased water rates for consumers. If trade tensions persist, infrastructure investments in the water sector could also face setbacks, delaying crucial modernization and sustainability initiatives.

Challenges and Solutions

The imposed tariffs disrupt North American energy markets, creating uncertainty for businesses that depend on stable utility costs. They not only increase operational expenses but also deter investments in renewable energy and sustainability initiatives. Companies would need to start looking for a partner to help them manage their utility bill services in this uncertain times. 

To mitigate these impacts, businesses can adopt energy management strategies, strategic energy procurement, and explore local renewable energy sources to reduce reliance on volatile international markets. Partnering with Vervantis for expert consulting services can help companies navigate these challenges effectively. Our team provides tailored solutions to enhance energy efficiency, manage procurement risks, and ensure long-term cost stability. Investing in energy-efficient technologies and diversifying supply sources with strategic guidance from Vervantis can also provide resilience against future policy shifts.