Cross-border electricity tariffs undermine power system efficiency, decarbonization and reliability in North America.

Cross-border electricity tariffs above 55% on Ontario and 90% on Quebec nearly eliminate imports, increasing emissions and risking grid reliability in North America.

• Why it matters: Understanding the impact of tariffs on cross-border trade is crucial because it affects system efficiency, decarbonization efforts, and the stability of interconnected power grids.
• What they did: Using ten years of New York electricity-market data and power-system simulations, the study analyzed how tariffs influence imports, prices, emissions, and reserve capacity.
• The result: High tariffs reduce imports, raise costs, increase fossil fuel reliance, and diminish reserves, thereby undermining decarbonization and increasing the risk of power disruptions.