When the next generation of kids grows up enough to learn a thing or two about governance, the date March 4, 2025 could come up in their history classes. It’s the day the White House stated it would go ahead with previously delayed plans to slap 25 percent tariffs on goods from America’s biggest, geographically closest trading partners. Welcome to a trade war with the neighbours. This all has the potential to get ugly, with everything from cars to electricity potentially impacted. But that gives me a wacky idea.
On Tuesday, the Wall Street Journal reported that Canada has threatened a separate 25 percent export tax on electricity, potentially even shutting off the taps to states like New York, Michigan, and Minnesota in April if more tariffs hit Canadian goods. Like many Canadians, I have a lot of love for New York, Michigan, and Minnesota. Despot is the greatest rapper to never drop an album. Woodward Ave is nothing short of iconic. Minnesota gave the world Prince. But dammit, if a trade war’s coming, we aren’t rolling over.
Of course, we also aren’t naive. There is a way Americans could theoretically smuggle tariff-free electricity from across the Canadian border if they own an electric vehicle. It’s not advisable and its legality is questionable, but it may be technically possible. Think of it as the reverse of Canadians filling up their tanks in America due to cheaper gas prices south of the border, just with an actual loophole to exploit.
Let’s say this theoretical tariff-dodger lives in Buffalo or Detroit. They could theoretically drive across the border to Port Colborne or Windsor and search for a free Level 2 charger. Will it be as fast as a DC fast charger? Absolutely not, but it can get the job done over time. In the meantime, this hypothetical driver could walk around, put a bit of money into the Canadian economy, eat some good food, and see the sights.
From there, it’s simply a matter of driving back across the border, declaring $0 in goods because this theoretical driver used a free public charger and didn’t pay a dime for the electricity, and getting a few dozen kilowatt-hours across the border for basically the price of a bridge or tunnel toll.
Granted, to maximize how far this tariff-dodging electricity goes, our theoretical driver would need an electric car with vehicle-to-load or vehicle-to-home capability. Think F-150 Lightning, Kia EV9, or Chevrolet Silverado EV — something with a large enough battery pack and the right software to power a home for days, provided electricity is rationed wisely.
With the right equipment, our theoretical driver could use their foraged electricity to run their refrigerator, their lights, maybe even a few other appliances. Mind you, proper vehicle-to-home equipment can cost thousands of dollars. The Wallbox Quasar 2 system for the Kia EV9 stickers for $6,440 and GM’s “essential” vehicle-to-home bundle costs $7,299, for example.
Given that free public charging stations also exist in America, smuggling electricity across the northern border wouldn’t put you ahead, at least not currently. It’s a long trip out of the way for savings of approximately $0, and the economics of the plan just don’t work out great unless electricity prices spike in the U.S. to the point where free Level 2 charging stations just don’t exist anymore.
Even charging at home, the gulf is significant. If we use the Windsor-Detroit tunnel as an example, it costs $8.25 to go from Detroit to Windsor, and another $7.25 Canadian to go from Windsor back to Detroit. At current conversion rates, that works out to a total of $13.25 just in toll costs, and that’s before we account for electricity used for travel.
Assuming a mid-peak Ontario electricity price of 12.2 Canadian cents per kWh, U.S. electricity rates would have to spike beyond $0.185 per kWh for the trip to make sense, assuming literally zero public charging station markup. It’s common to find public Level 2 stations charging $2 Canadian per hour, and assuming you’re charging at 9.6 kW, that works out to almost 21 Canadian cents per kWh, or about 14 U.S. cents per kWh. Apply that 14.75 percent markup, and local U.S. rates would have to spike beyond 21.3 cents per kWh to break even on the trip, if a paid public charger is used.
If a free public charger is used, well, the trip might actually be worth it provided you’re close enough and you have a large enough battery pack. If you pump 100 kWh into the long-range pack on an F-150 Lightning for just the cost of tolls, the effective rate works out to 13.25 cents per kWh. Anyway, if you do own an electric car, live close to the Canadian border, and want to give a big up-yours to the trade war, take a trip to Canada, juice up at the handful of free charging stations we have, and dine on our food. Not only will you be getting some pretty clean energy, you’ll get a little adventure out of it, too.
Top graphic image: Ford
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Much easier to just talk more that direction on my ham radio. Making multiple 1000 watt transmitters light up when you hit the repeater is totally free and a faster waste of electricity
I realize this post is very much in jest, but I wouldn’t be surprised in a prolonged trade war if solar panel and battery storage uptake increases a lot. Even with most solar panels being Chinese made (and subject to their own tariffs), if energy costs keep soaring, it would be financially irresponsible NOT to consider some form of home energy production.
I did this and had my system switched on at the end of 2019, I have 36 panels that produce enough power to run two EV’s (Combined both cars cover around 18K miles annually) and power the house and still make a surplus of around 3,000 kW/h.
The system will pay for itself in around six years from 2019, less if I include the gas savings for one vehicle. I had a company gas card for the other vehicle, so no savings there.
I did the math for my situation and it would have been as you say “financially irresponsible NOT to”.
I don’t have battery storage, it was cheaper to add more panels, the math for that has definitely changed.
Man I can’t wait for V2H and home battery storage to become more mainstream/cheaper . We are already paying an effective rate of $. 20 kwh here and our power company is raising rates 10% this year. I would love to go fully off grid.
Once again the Autopian has no one with actual economics knowledge. By the time you charge up with imported Canadian power with tariffs drive across the border, plug in and go for dinner, drive back and use the free EV power I’m guessing you are $100 in the hole.
How much would it cost me to pay for a economics expert to teach a course for the Autopian team and would DT and JT make it mandatory? Also is there a free course available because I am not rich?
I believe this article falls more in the entertainment side then the educational side, but technically you could say it meets their two requirements…
You took this post seriously?
“is there a free course available because I am not rich?”
Yes, and it comes with a cookbook included.
This is like when a certain someone pointed out what a good deal the CarMax warranty used to be. Now Canadians will be on the lookout for American license plates at their charging stations.
Man, you guys are more pissed at Trump than we are. Calm down Thomas, calm down. 🙂
Erm, youse guys voted for him, if he wrecks your economy and increases your inflation rate, you only have yourselves to blame. What did we do to deserve this other than politely abide by the agreements he made with us last time he was in office?
I did not vote for him. I almost hope he wrecks the economy so the country realizes that the Republican party is completely worthless when attached to this anchor.
I love the Autopian just for the fact that this idea occurred and was greenlit as an article. I got a great laugh out of the headline and premise. Good on ya Thomas.
It’s amazing how Hydro One in Ontario has made electricity so expensive.
We nearly had protests here in Quebec when the gov’t allowed to rate to go up to 6.7 cents/kWh for residential.
Is this a variation on the Seinfeld bottle deposit scheme?
https://en.wikipedia.org/wiki/The_Bottle_Deposit
The economics of this plan could be improved with the bottle deposit scheme. Take alcoholic empty containers larger than 20oz to Canada on the way there, they will earn $0.20 Canadian as returns. Then, pick up non-alcoholic cans, which have no deposit in Canada, and bring them back to Michigan. The blueprint for this empire is there, it just takes the courage to build it.
Coming to an America near you: a program that encourages Americans to donate their Jefferson $0.05 coins to Lone Skum after Canada says “no more nickel for you!”
thanks a lot, now the free L2 chargers are going to start checking VINs for US addresses and deny access.
I can solve this problem. All I need is an 18 wheeler loaded to roof with Canadian made D cell batteries and a black Trans-Am to keep those Mounties busy.
Problem: a 2020 Camry V6 will blow the T/A’s doors off.
Yes but Camrys in traffic are invisible and you need something flashy to catch the attention of the fuzz and draw the heat off the 18 wheeler.
Maybe a bobtail ev semi truck I haven’t seen a complete used one for sale but given the market dynamics I wouldn’t expect it to be more then $15k used. In theory a lot of battery capacity can probably put more batteries in a headache rack. People used to go from Detroit to Windsor to drink and gamble I guess. No real difference just charging your ev semi.
Just gotta head to the Blue Water Bridge in Port Huron, MI/Sarnia, ON where the toll is half price! Only 1.5 hours away from Detroit…
And Radar O’Riley mailed himself a jeep back home one part at a time. I love that someone thought this idea up and wrote and article. I love the Autopian.