Ontario's Premier Doug Ford has boldly asserted his intent to implement harsh retaliatory measures against the United States if President Donald Trump's proposed 25 percent tariffs on Canadian imports take effect. Ford made his comments during a mining convention held in downtown Toronto on March 3, a day before the tariffs are officially set to commence.
The Premier, who was re-elected following a campaign based on a strong opposition to the trade conflict, stated, "If they want to try to annihilate Ontario, I will do everything - including cut off their energy with a smile on my face," as reported by the Toronto Sun. He elaborated on his position, explaining that U.S. border states rely heavily on Ontario's energy supply, insisting that they "need to feel the pain" of the tariffs.
Ford's comments come amid Trump's declaration of the tariffs, which aim to address what the U.S. President has characterised as a crisis of drug trafficking, particularly concerning fentanyl crossing the border. In light of this, Ford has committed to not only cutting off electricity to U.S. states but also to introducing a surcharge on each megawatt of energy sold to them. This follows his controversial plan to cancel a $100 million contract with Elon Musk's Starlink, a move aimed at further retaliatory measures against U.S. actions.
The Premier's threats are not mere political posturing; Ontario is a significant exporter of electricity to regions such as New York, Michigan, and Minnesota, with the majority of American power grids, excluding Texas, interconnected with Canada. This dependence could make Ford's proposed actions impactful.
As tension escalated, President Trump confirmed the tariffs would take effect on March 4, marking a significant moment in the ongoing trade war. Speaking from the White House, Trump stated, “We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect.” His announcement has roiled markets, with the S&P 500 experiencing a notable decline of 1.8 percent, its worst performance since December. Market analysts have expressed concern regarding the economic implications of these tariffs, stating that they will likely act as a shock to the market.
Furthermore, Trump reiterated that negotiations were off the table, identifying a need for car manufacturing and other industries to relocate to the United States to avoid the tariffs. The political climate surrounding these tariffs could have wide-ranging implications, particularly for Ontario’s economy, which relies heavily on industries such as auto manufacturing and steel production—sectors likely to be deeply affected by the new trade regulations.
The actions and rhetoric from both sides suggest increasing tensions as Ontario and the United States navigate the implications of these tariffs and retaliatory measures. Ford has made it clear that his government will stand firm in its response, stating, “I [didn't] start this tariff war, but we're going to win this tariff war.”
Source: Noah Wire Services