TORONTO — On Wednesday, the premier of Ontario, Canada’s largest province, warned that he may halt energy supplies to the United States if President-elect Donald Trump follows through with his plan to impose significant tariffs on all Canadian products. Trump has signaled intentions to introduce a 25% tax on goods crossing the U.S. border from Canada and Mexico to combat issues of immigration and drug trafficking.
“We are preparing a response, and I believe other provinces will too. We will consider all options, including cutting off their energy supplies,” stated Ontario Premier Doug Ford following discussions with Prime Minister Justin Trudeau and other provincial leaders. While expressing hesitance about wanting this escalation, Ford acknowledged a pessimistic outlook on avoiding tariffs. He remarked, “The confrontation is set for either January 20 or 21,” referencing the day of Trump’s inauguration.
Ford emphasized the importance of actively opposing tariffs, asserting, “We will utilize all means necessary to defend our position. Canada cannot remain passive in this situation. It is regrettable that it involves our closest allies.” Approximately 60% of U.S. imported crude oil and 85% of imported electricity are sourced from Canada, underscoring the significant interdependence between the two nations.
There was some ambiguity regarding whether Ford’s warning applied solely to Ontario or to all Canadian provinces. Nonetheless, Grace Lee, a spokesperson for Ford, clarified that the topic was discussed during their recent meeting with Trudeau and the provincial chiefs. “While Premier Ford’s comments specifically represent Ontario, other provinces will also evaluate their options in this area,” Lee stated via email.
In the year 2023, Ontario supplied power to around 1.5 million homes in the United States and plays a vital role in electricity exports to states like Michigan, Minnesota, and New York. The transition team for Trump has yet to provide a comment on this looming threat.
Canada also stands as the top foreign source of steel, aluminum, and uranium for the U.S., along with supplying 34 critical minerals that are essential for American national security, as indicated by Pentagon interests. Responding to the potential tariffs, Deputy Prime Minister Chrystia Freeland echoed the sentiment that Canada would retaliate against unwarranted tariffs.
Freeland added that some provincial leaders expressed a unanimous agreement to formulate a solid response to these tariffs, which may include critical minerals among other resources exported to the U.S. While she did not explicitly mention oil exports, she noted that “other strategies were discussed.” A significant portion, approximately one-third of Canada’s trade with the U.S., revolves around energy. The daily value of goods and services that travel across the Canadian-American border is nearly $3.6 billion (Canadian), with Canada being the leading export market for 36 states in the U.S.
In order to address Trump’s security concerns, Canada has pledged to enhance border security by increasing the number of officers and incorporating advanced technologies such as drones and sniffer dogs. Public Safety Minister Dominic LeBlanc stated, “We intend to communicate the details of this enhancement plan with the incoming Trump administration and with Canadians in the near future.”
Trudeau warned that the tariffs would have a dire impact on both the Canadian economy and cause real difficulties for American citizens. Experts predict that such tariffs would force companies to raise prices significantly across various sectors, including food, clothing, cars, and alcohol. According to the Produce Distributors Association, fresh produce costs will rise, adversely affecting U.S. farmers, who may retaliate against Canadian goods in response.
In retaliation for the tariffs imposed by the U.S. in 2018 on Canadian steel and aluminum, Canada enacted its own duties. On the same day, Canada’s central bank reduced its key interest rate by half a percentage point, describing Trump’s potential tariff measures as an “important source of new uncertainty.” Bank of Canada’s Governor Tiff Macklem highlighted the unpredictable nature of the situation, stating, “The forthcoming tariffs, especially at such a suggested magnitude, pose significant uncertainty.”
Trudeau garnered attention from billionaire Elon Musk, a notable Trump supporter, after he expressed disappointment that U.S. voters chose Trump over Kamala Harris in the recent elections. “We anticipated progress, yet it seems the United States has opted not to elect its first female president,” Trudeau lamented at an event promoting gender representation in politics. Musk labeled Trudeau as “insufferable” in a post on social media, asserting, “He won’t be in power for long.”
Ford also criticized Trudeau’s comments, stating, “Those remarks were counterproductive. They were raised multiple times in our meeting. Trump was elected through a democratic process, and it doesn’t matter if people agree or disagree; it’s not our concern. We elect Canadians, and such remarks are not constructive. The Prime Minister should have understood this.”
