Manitoba officials remain tight-lipped about the potential economic fallout from threatened U.S. tariffs on Canadian goods. During a legislature committee hearing, Finance Minister Adrien Sala and Manitoba Hydro CEO Allan Danroth refused to speculate on the impact of tariffs proposed by incoming U.S. President Donald Trump. The hearing saw questions from Opposition Progressive Conservatives regarding the potential for retaliatory measures, such as curbing hydro exports, and the possibility of rate increases for Manitoba consumers in the wake of recent Hydro losses.
WINNIPEG — Manitoba government and officials at Crown-owned Manitoba Hydro declined to disclose the potential consequences of tariffs threatened by incoming U.S. president Donald Trump during a legislature committee hearing on Friday. Trump, who is scheduled to be sworn in on Monday, has vowed to implement 25 percent tariffs on Canadian goods if the nation doesn't curb the flow of drugs and migrants across the border.
Opposition Progressive Conservative members questioned the NDP government and hydro officials regarding the potential economic impact and whether Manitoba might retaliate by reducing hydro exports. 'We're not going to engage in hypotheticals today about what might happen or what we're preparing for,' stated Finance Minister Adrien Sala, who oversees Manitoba Hydro. 'At this time, without any specific details on the tariff, it's too soon to say how a potential policy change might affect Manitoba Hydro in any way,' added Allan Danroth, the utility's president and chief executive officer. Hydroelectric power represents one of Manitoba's most significant exports to the United States. Its value fluctuates considerably year-to-year due to water levels and other factors, but government statistics reveal it has consistently ranked among the top five exported goods in recent years, alongside items such as medication and canola. Kelvin Goertzen, a legislature member with the Opposition Progressive Conservatives, asserted that Manitoba should follow other provinces and explicitly state whether retaliatory measures, such as curbing exports, might be implemented if tariffs are imposed. 'Premiers such as ... Quebec Premier François Legault indicated that a response using the leverage of Quebec Hydro was not off the table,' Goertzen remarked. Manitoba Hydro has, in certain years, contributed hundreds of millions of dollars to the government's revenue. However, an anticipated profit in the last fiscal year transformed into a $157-million loss, largely attributed to low water levels. The government projected a profit at Hydro this fiscal year, but that estimate also declined, with the latest projection indicating a $164-million loss. These consecutive losses arise during a time when the government has pledged to freeze consumer rates for the entirety of 2025. A consumer coalition has expressed concerns that the freeze might merely lead to a substantial rate hike in the following year to rectify the utility's financial situation. Tory hydro critic Lauren Stone inquired from officials at the committee about the potential magnitude of a rate increase for 2026. 'Does a rate freeze today mean a rate shock for Manitobans tomorrow?' she questioned. Hydro officials responded that detailed information would be presented in an application to the Public Utilities Board, the provincial regulator, sometime within the next few months. Danroth and Hydro board chair Ben Graham declined to engage with reporters as they departed the hearing.
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