If Canada opts to reduce or eliminate electricity exports to New England, the impact would be largely financial — at least under typical weather conditions, according to the region's grid operator. A previous 25% tariff in 2025 lasted only a day.

The two countries failed to reach an agreement before Saturday’s deadline for the Section 338 levies, with Canada vowing to “match those tariffs dollar for dollar.”

“Canada will match those tariffs dollar for dollar to protect our workers and businesses,” Prime Minister Mark Carney said in a statement.