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Canadian official threatens to cut 1.5M Americans’ power in potential Trump trade war

December 13, 2024
in Business
Reading Time: 3 mins read
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Canadian official threatens to cut 1.5M Americans’ power in potential Trump trade war
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A senior Canadian official is threatening to cut off electricity to some 1.5 million Americans and ban the import of US-made beer and liquor as part of a potential trade war with the incoming Trump administration.

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Doug Ford, the premier of the Canadian province of Ontario, suggested retaliating against possible tariffs that President-elect Donald Trump has threatened to impose on products from Canada.

During a meeting on Wednesday with Canadian Prime Minister Justin Trudeau and other premiers, Ford predicted that there is a “100%” chance that Trump will make good on his pledge to slap a 25% tariff on all products that are imported from north of the border.

Ontario Premier Doug Ford has threatened to escalate a potential trade with the incoming Trump administration. AP

In response, Ford proposed to “cut off” millions of Americans living along the northern frontier from Ontario’s energy exports, according to Global News.

“It would turn off the lights to a million-and-a-half Americans,” Ford told Global News. “If they come at us we have to stand up for Canadians, we have to stand up for Ontarians.”

Canada is the nation’s No. 1 exporter of energy to the US, which spends around $3 billion annually for Canadian electricity, which is generated using hydropower.

Last year, Canada exported approximately 33.2 million megawatt hours of electricity to the US — the most of any country though it still accounted for less than 1% of total US energy consumption.

Ontario exports energy to border states including Michigan and New York.

Ontario government officials told Global News that Ford is mulling “escalation maneuvers” that are still being worked out.

President-elect Donald Trump has vowed to slap tariffs on imports from Canada. Aristide Economopoulos

Among the measures being discussed are restricting exports of Canadian minerals that are critical for production of electric vehicle batteries.

Ontario could also ban US companies from the province’s procurement process as well as restrict imports of American-made alcohol.

One source told the news site that the province was “deadly serious” about a possible trade war escalation despite the fact that Ontario could stand to lose up to $500 million in revenue.

Other Canadian provinces could also join in to inflict more pain on Americans, according to the report.

Canadian Prime Minister Justin Trudeau has reportedly told Trump that tariffs would “kill” his country’s economy. AP

“Shutting off its electricity is one thing,” a source told Global News. “Ontario and Quebec shutting off electricity is entirely another thing.”

Ford told reporters that Ontario was “sending a message” to the US.

“You come in and attack Ontario … we’re going to use every tool in our toolbox to defend Ontarians and Canadians across the border,” he said.

“Let’s hope that never comes to that point.”

Trump last month vowed that one of his first acts as commander-in-chief will be to impose a sweeping 25% tariff on all products imported from Canada and Mexico.

Trump, 78, argued that the duty is necessary to get America’s northern and southern neighbors to crack down on illegal immigration and drug smuggling.

“As everyone is aware, thousands of people are pouring through Mexico and Canada, bringing Crime and Drugs at levels never seen before,” the president-elect wrote on Truth Social.

Trump has demanded that Canada do more to crack down on migrants coming into the US. AP

“Right now a Caravan coming from Mexico, composed of thousands of people, seems to be unstoppable in its quest to come through our currently Open Border.”

Earlier this week, Trump continued to troll Trudeau amid tariff talks, dubbing him “governor” of the “Great State of Canada” after purportedly joking at a private dinner about the American ally to the north becoming the 51st US state.

Trudeau pleaded with Trump not to impose the high tariff because it would “kill” their economy, Fox News reported.

“So your country can’t survive unless it’s ripping off the US to the tune of $100 billion?” Trump reportedly responded, referring to the American trade deficit with Canada. 

The Post has sought comment from the Trump transition team.

Credit: Source link

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