Ontario Premier Warns of US Energy Export Cuts if Trump Imposes Sweeping Tariffs on Canada

Ontario Premier Doug Ford warned on Wednesday that Canada could cut energy exports to the United States if President-elect Donald Trump imposes sweeping tariffs on Canadian goods. 

Trump has threatened a 25% tax on all imports from Canada and Mexico unless they take action to stem the flow of drugs and migrants.

“We’re going to put our list together, and I’m sure the other provinces will as well. But we will go to the full extent, depending on how far this goes. We will go to the extent of cutting off their energy,” Ford said after meeting with Prime Minister Justin Trudeau and other provincial premiers.

Ford acknowledged he did not want to resort to such measures but expressed pessimism about avoiding tariffs. 

“This fight is 100% coming on Jan. 20 or Jan. 21,” he said, referencing Trump’s inauguration date.

The United States imports about 60% of its crude oil and 85% of its electricity from Canada. It was unclear whether Ford’s remarks referred to all provinces or just Ontario. However, Ford’s spokesperson, Grace Lee, confirmed that energy export cuts were discussed during the meeting with Trudeau and the premiers.

Lee added that Ontario powers approximately 1.5 million homes in the US annually and is a major exporter of electricity to Michigan, Minnesota, and New York. 

“Premier Ford can only speak on behalf of Ontario, but it’s an area of provincial jurisdiction that we would certainly look at,” she said.

Canada is also the leading supplier of steel, aluminium, and uranium to the US and exports 34 critical minerals that are vital to American national security. 

Deputy Prime Minister Chrystia Freeland stated, “Canada, of course, will respond to unjustified tariffs,” while noting that provincial premiers supported a robust response, including potential measures involving critical minerals.

The US-Canada trade relationship is significant, with nearly $3.6 billion Canadian (US $2.7 billion) worth of goods and services crossing the border daily. Canada is the top export destination for 36 US states.

Canada has promised enhanced border security to address Trump’s concerns, including deploying additional police, drones, and sniffer dogs. Public Safety Minister Dominic LeBlanc said these plans would be shared with Trump’s incoming administration in the coming days.

Prime Minister Trudeau described the potential tariffs as “absolutely devastating” for Canada but warned they would also cause hardship for Americans. Economists predict increased prices for food, clothing, automobiles, and other goods as businesses pass on the added costs to consumers.

The Bank of Canada has also expressed concern, cutting its key interest rate by half a percentage point and calling Trump’s tariff threats “a major source of new uncertainty.” Bank Governor Tiff Macklem noted, 

“We don’t know if those tariffs are going to be implemented, at what level, or if Canada will take retaliatory measures.”

Meanwhile, Trudeau faced backlash for remarks about Trump, suggesting that the US election represented a setback for women’s progress. Billionaire Elon Musk, a Trump supporter, called Trudeau “insufferable” in a post on X. Ford also criticised Trudeau’s comments, calling them unhelpful. “Donald Trump was elected democratically. If you like him or you don’t like him, that’s not our issue,” Ford said.

Faridah Abdulkadiri

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