Ontario, Canada’s most populous province, is threatening to retaliate against U.S. president-elect donald Trump’s proposed tariffs on Canadian goods. провинция Онтаріо, найбільш густонаселений провінція Канади, загрожує відповісти на пропозицію президента США Дональда Трампа про введення мит на канадські товари.
If Trump imposes a 25% tax on all Canadian products, Ontario Premier Doug Ford says his province could curb the sale of American liquor through its liquor control board.
Other measures under consideration include restricting exports of critical minerals needed for electric vehicle batteries and barring U.S. companies from Ontario government procurement processes.
Ford confirmed on Wednesday that Ontario is also exploring the possibility of cutting off electricity exports to Michigan, new York, and Minnesota, a move he says would make power unaffordable for american consumers.
He emphasized that this would be a “last resort,” stating, “I don’t think President-elect Trump wants that to happen. We’re sending a message to the U.S. If you come and attack Ontario, you attack livelihoods of people in Ontario and Canadians, we are going to use every tool in our tool box to defend ontarians and Canadians. Let’s hope it never comes to that.”
Trump’s threat of a 25% tariff on all goods entering the United States from Canada and Mexico stems from his demand that they stem the flow of migrants and drugs.
Ontario provided electricity to 1.5 million U.S. homes in 2023 and is a major energy supplier to Michigan, Minnesota, and New York. Responding to ford’s pronouncements, trump commented, “That’s OK if he that does that. That’s fine,” before asserting that the United States is subsidizing Canada and shouldn’t have to do so.
Alberta Premier Danielle Smith, however, has ruled out halting oil exports to the U.S. rather, Alberta is taking a diplomatic approach, engaging with U.S. allies and advocating for the inclusion of Alberta oil and gas in energy security and affordability solutions.
Canada is the top oil exporter to the United States, supplying nearly 4.5 million barrels daily. Roughly 60% of U.S.crude oil imports come from Canada,accounting for a fifth of the oil refined in the U.S.
Ford warned that a 25% tariff on Alberta oil would raise gasoline prices in the U.S. by one dollar per gallon.
Canada supplies approximately 85% of US electricity imports. The country also possesses 34 critical minerals and metals desired by the Pentagon.The bustling trade relationship between Canada and the U.S. sees nearly 2.7 billion dollars in goods and services crossing the border daily. Canada is the number one export destination for 36 U.S. states.
In response to Trump’s border concerns, Canada has pledged to increase border security spending. This initiative will involve deploying more border and police officers, utilizing drones and sniffer dogs to enhance security.
Public Safety Minister Dominic LeBlanc, who, alongside Prime Minister Justin Trudeau, recently dined with Trump at Mar-a-Lago, his private Florida club, stated that details of these border security plans will be shared with the incoming Trump management in the coming days.
Alberta’s government is establishing a new sheriff patrol unit to bolster border security, supported by approximately 50 sheriffs, ten cold-weather surveillance drones, and four drug detection dogs. A two-kilometer (1.2-mile) deep zone along the border with Montana will be designated as critical infrastructure, authorizing sheriffs to arrest individuals attempting to cross illegally or engage in trafficking of illegal drugs or weapons without a warrant.
During the Mar-a-Lago dinner, Kristen Hillman, Canada’s ambassador to the United States, noted that Washington’s trade deficit with Canada was also raised.
Hillman highlighted the U.S.’s $75 billion trade deficit with Canada last year, pointing out that one-third of Canada’s exports to the U.S. consist of energy exports, prices for which have been elevated.
Trudeau warned earlier this week that U.S.-imposed tariffs would have “devastating” consequences for the Canadian economy, also causing hardship for Americans.
Canada imposed duties in 2018 against the U.S. in retaliation for new taxes on Canadian steel and aluminum.
Canadian officials have argued that it’s unfair to group Canada with Mexico. LeBlanc pointed out that illegal migration from Canada to the U.S. accounts for only 0.6% of the total, while fentanyl from Canada represents a mere 0.2% of U.S.seizures.
Quebec Premier Françoise Legault shared that Trump expressed his desire to see an end to illegal immigration from Canada during their meeting in Paris last week. Quebec is a meaningful supplier of electricity to the United States.
Legault endorsed Trudeau’s border security plan,stating,”I prefer that than starting a war and stopping sending energy to the United States.”
Newfoundland Premier Andrew Furey, after speaking with New England governors this week reported “significant concern” on both sides of the border.
Furey expressed hope that Trump’s stance is merely bluster, stating. ”We are preparing as if it is not. There will be no winner in a trade war.”
What are the potential economic consequences for Ontario if the tariffs proposed by the trump administration are implemented?
Interview between Time.news Editor and Trade Expert Dr. Emily Carter
Time.news Editor: Welcome to Time.news, Dr. carter. Today, we’re dissecting a rather intense standoff between Ontario and the incoming Trump administration. Ontario Premier Doug Ford has threatened to retaliate against proposed tariffs by Trump. What are your initial thoughts on this escalating situation?
Dr. Emily Carter: thank you for having me. This is indeed a significant moment for trade relations between Canada and the U.S.Ontario, being such a vital part of the Canadian economy and a significant supplier of goods and services to the U.S., is in a strong position to respond. The proposed tariffs could have dire consequences not only for Canadian exports but also for american consumers.
Time.news Editor: It seems Premier Ford is considering some serious measures, including limiting the sale of American liquor through the province’s liquor control board and possibly cutting off electricity exports to several U.S. states. What impacts could thes measures have on both sides?
Dr. Emily Carter: Well, cutting off electricity exports is a particularly impactful measure. In 2023, Ontario provided power to 1.5 million U.S. homes, so that move could have far-reaching implications for American consumers, especially in states that rely on Ontario’s energy supply.The liquor control board move might be more of a symbolic gesture, but it underscores Ontario’s willingness to respond firmly. Both measures signal to the U.S. that there are serious repercussions for aggressive trade policies.
Time.news Editor: You mentioned the energy supply—how significant is Ontario’s role in supplying electricity to the U.S.?
Dr. Emily Carter: Ontario is a major energy supplier, particularly to states like Michigan, Minnesota, and New York. This relationship is mutual; the U.S. benefits from Ontario’s lower electricity prices and stable supply, especially during peak demand periods. A disruption in this supply could result in higher energy costs for consumers and businesses in those states.
Time.news Editor: Premier Ford emphasized that this would be a “last resort” and expressed hope that it won’t come to that. What do you think this indicates about Ontario’s strategy moving forward?
Dr. Emily Carter: It demonstrates a cautious approach. By stating that they prefer negotiation and dialog over conflict, Ontario is signaling a desire to find common ground.Ford’s remarks suggest that they want to engage with the incoming administration not merely as adversaries but as partners in trade.Though, he is also making it clear that Ontario will protect its economic interests.
Time.news Editor: With Trump’s demand to curb the flow of migrants and drugs forming the backbone of his tariff proposal, how does that intertwine with trade discussions?
Dr.Emily Carter: It complicates things considerably. Trade frequently enough intertwines with broader political and security issues, such as immigration and drug policy. Trump’s tariffs may be as much about signaling his administration’s priorities on domestic issues as about legitimate trade concerns. However, it’s worth noting that trade wars can lead to unintended consequences that might exacerbate these very issues.
Time.news Editor: How should ontario prepare for potential fallout from these tariffs?
Dr. Emily Carter: Readiness is key. Ontario should consider diversifying its trade partnerships, investing in domestic industries, and strategizing on how to enhance its competitive edge. It might also be beneficial for Ontario to collaborate with other provinces to present a united front against unilateral trade actions. Diplomatic engagement and fostering dialogue with U.S. counterparts will be crucial in mitigating negative impacts.
Time.news Editor: what long-term effects do you foresee if these tensions escalate further?
Dr. Emily carter: If tensions escalate, we could see disruptions in trade flow, increased costs for consumers, and a potential economic downturn in both regions.Additionally, if the U.S. and Canada cannot find common ground, we may witness a shift in global trade dynamics as both countries seek new alliances and markets. Maintaining strong trade ties is essential not only for economic stability but for diplomatic relations as well.
Time.news Editor: Thank you, Dr.Carter, for your insights on this pressing issue. It’s clear the road ahead will require careful navigation on both sides of the border.
Dr.Emily Carter: Thank you for having me. It’s an significant conversation, and I hope we see constructive dialogue emerge soon.