Canada Trade War Puts New York's Hydro Power At Risk

Business Energy Canada Trade War Puts New York’s Hydro Power At Risk By Daniel Markind , Contributor. Forbes contributors publish independent expert analyses and insights. I am an attorney who writes about energy issues and our world. Follow Author Aug 31, 2026, 10:36am EDT --:-- / --:-- This voice experience is generated by AI. Learn more . This voice experience is generated by AI. Learn more . Summary New York's $6 billion Champlain Hudson Power Express, designed to bring Quebec hydropower to NYC, faces uncertainty just three months after its announcement. Escalating US-Canada trade tensions, fueled by US tariffs, have prompted Canadian officials to consider withholding energy supplies. Ontario Premier Doug Ford suggested taxing oil, while Toronto Mayor Olivia Chow openly supports cutting off electricity to the US. This puts New York's energy security at risk, as Canada provides 22% of its electricity imports. The situation exposes a critical oversight by NY officials who, in their pursuit of clean energy and rejection of fossil fuels, did not anticipate such international trade risks, potentially jeopardizing the state's ambitious environmental goals and energy supply. Show More EDMONTON, CANADA MARCH 18: A view of the Keyera Alberta Envirofuels Inc plant in Edmonton, Alberta, Canada, on March 18, 2025. (Photo by Artur Widak/NurPhoto via Getty Images) NurPhoto via Getty Images Just three months after New York Governor Kathy Hochul announced the opening of Champlain Hudson Power Express (CHPE), a $6 Billion project to bring hydropower from Quebec to the New York City metropolitan area, the breakdown in overall trade talks between the United States and Canada have put the energy to be supplied at risk. In fact, nerves and feelings are so raw that Canadian officials are suggesting they withhold energy from the United States entirely as a way to hit back against the Trump Administration’s imposition of tariffs on Canadian goods and services. Ontario’s Premier Doug Ford publicly has floated the idea that Canada should tax the crude oil it sends to America, and Prime Minister Mark Carney has stated ..."Canada fuels America’s growth. I don’t think they want us to stop sending any of that energy." ( Source ). While there have been no direct threats for Canada to stop supplying hydropower, New York residents already are contemplating that possibility. At present, Canada provides 22% of New York State’s electricity imports. Concerning Canadians, SUNY Plattsburgh’s Chris Kirkey says that "their sense of aggregation, their sense of outrage frankly, is at an all-time high." ( Source ). Toronto Mayor Olivia Chow probably has gone the farthest, announcing that she supports cutting off the supply of imported electricity altogether to get America’s "attention". ( Source ). The uncertainty among conflicting options reflects a risk that few, if any, New York State officials contemplated when they rejected fracking and fought fossil fuel pipelines so strenuously just a few years back, and spent billions on so-called "clean energy" projects. Given the long history of close relations between the United States and Canada, international trade tension risk likely was not foreseen as a serious possibility – until now. However, such complacency has turned out to be a mistake, as recent events have shown. In June, Governor Hochul announced that CHPE was expected to deliver 10.4 terawatt hours of clean energy per year to the New York Metro area – meeting up to 20% of the city’s needs – and reducing carbon emissions by 37 million metric tons through 2040. ( Source ). Now, however, all of this prior positivity may be at risk, due to events beyond the control of both State officials and others. It is a classic case of globalization, the risks of putting all of one’s eggs into one basket, and the law of unintended consequences hitting all at once. New York's commitment to clean energy is certainly admirable, but it now may come to rue the day that it put itself into an untenable position regarding the availability of energy that very few saw coming. Editorial Standards Reprints & Permissions Explore Topic