Manitoba cabinet to approve or deny power deals with the United States

Premier of Manitoba Wab Kinew, accompanied by other Council of the Federation members, speaks to reporters at the Mayflower Hotel in Washington, Wednesday, Feb. 12, 2025. THE CANADIAN PRESS/AP-Ben Curtis

WINNIPEG — The Manitoba government signalled Thursday it may curtail exports of hydroelectricity to the United States in response to tariffs imposed by U.S. President Donald Trump, but stopped short of cutting back supply immediately or adding surcharges.

The NDP government issued a directive to Crown-owned Manitoba Hydro that says cabinet approval is now needed for any new major power purchase or export contract with bodies in the U.S., or any extensions or cancellations of existing deals.

"We have to send a strong message to people south of the border than this tariff dispute launched by Donald Trump is not helping anyone," Premier Wab Kinew told reporters.

Manitoba is not going as far as Ontario, which is applying a 25 per cent extra charge on electricity shipped to 1.5 million Americans. Kinew said he's not ruling out measures similar to Ontario Premier Doug Ford, but is also keeping in mind the money and jobs that are tied to Manitoba's energy exports to Minnesota and other states.

"I've been going back and forth with Premier Ford and we're asking questions about their approach and trying to understand how they're applying this," Kinew said.

"We're looking at the possibility of making changes to what we export to the U.S. ... but given the stakes — hundreds of megawatts, thousands of megawatts, depending on the time of year, billions of dollars — we've got to be really judicious here."

Manitoba has already pulled U.S. alcohol products from liquor stores as a retaliatory move, and Kinew says future possibilities include restricting U.S. companies from getting contracts with the province.

The government introduced a bill in the legislature Thursday that authorizes the development of a "buy Canadian" policy for government goods and services. Details are to be worked out, but the bill says the policy will allow for preferential treatment for Canadian suppliers.

Trump slapped a 25 per cent tariff on nearly all Canadian goods entering the United States on Tuesday. But on Thursday, he paused tariffs on some Canadian imports linked to the auto industry and lowered levies on potash to 10 per cent.

Kinew said the pauses and carve-outs are not good enough, and the tariffs must be removed completely.

He said the fact the U.S. has lowered tariffs on some energy products is a sign that energy exports are a good tool for Canada to use as leverage

"It reveals an area where we have strength — something that they need."

This report by The Canadian Press was first published March 6, 2025.

Steve Lambert, The Canadian Press