Canada Vows to Cut Off Electricity to United States Over Tariff War

Trump's Tariffs Prompt Canada to Threaten Energy Export Blockade

Ontario Premier Doug Ford Threatens to Block Electricity Exports to the United States Amid Tariff Dispute

Ontario Premier Doug Ford has announced that he will block energy exports to the United States if President Donald Trump proceeds with plans for a 25 percent tariff on Canadian goods. This announcement, made on Monday, comes as the U.S. prepares to implement tariffs on goods from Canada, Mexico, and China.

The Ripple Effect of Tariffs and Canada’s Retaliation

The proposed tariffs have already sparked fears of a global trade war, with both Ottawa and Beijing announcing plans to retaliate.

The U.S. tariffs include a 25 percent tariff on Canadian goods, excluding energy products, which will face a 10 percent tariff. It’s important to note that given that Canada is the largest source of American energy imports, with 59 percent of all crude oil imported into the U.S. in 2019 coming from Canada.

Ford’s Strong Response and the Potential Impact on Energy Supplies

Speaking at a mining convention, Ford addressed the Trump administration directly, stating, “I don’t start a tariff war, but we’re going to win this tariff war.”

He added, “If they want to try to annihilate Ontario, I will do everything—including cut off their energy with a smile on my face, and I’m encouraging every other province to do the same.” Ford emphasized the dependency of U.S. states on Canadian energy, noting, “They rely on our energy. They need to feel the pain.”

Trump’s Justification for the Tariffs and Broader Implications

In response to the tariffs, Trump argued that they were necessary due to Mexico and Canada’s failure to address the influx of fentanyl and illegal migrants across their borders. He also claimed that both countries, which have trade surpluses with the U.S., had been taking advantage of the American economy, reports MSN.

Trump asserted, “We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed tariffs will go into effect.”

The Potential Consequences of Cutting Off Electricity Exports

If Canada restricts energy exports to the U.S., it is unlikely to cause power shortages, but it could lead to increased prices for businesses and households, contributing to inflation.

Ford highlighted the significance of Canadian energy exports in an NBC interview, stating, “We keep the lights on for 1.5 million homes and manufacturing facilities in New York, in Michigan, and in Minnesota.”

Looking Forward: Trade Relations and Energy Dependencies

As the tariff dispute continues, the impact on trade relations and energy dependencies between the U.S. and Canada remains uncertain.

Business interests on both sides of the border may pressure their respective governments to reach a deal to end the tariffs and stabilize the economic landscape.