TORONTO — The leader of Ontario, Canada’s largest province, expressed serious concerns on Tuesday regarding President-elect Donald Trump’s proposal to impose significant 25% tariffs on all goods from Canada. Premier Doug Ford characterized the tariffs as a potential “disaster” that could negatively impact the U.S. stock market.
In a conversation with the press, Ford shared his apprehension about Trump’s strategy to initiate a large-scale deportation of undocumented immigrants. He mentioned that, in response to a potential influx of migrants moving northward, he has devised a plan to deploy hundreds of police officers to the border. He stressed that the interconnected nature of the U.S. and Canadian economies would make the tariffs ineffective. Ford pointed out that in the automotive sector alone, parts frequently cross the Canada-U.S. border multiple times before being assembled in either Ontario or Michigan.
“It is so integrated that I don’t see how you can separate that in the supply chain; it would be catastrophic,” Ford remarked. He underscored that the stock market would likely respond adversely to such tariffs, noting that many business leaders agree that this direction is counterproductive. Ford expressed confidence that the potential market implications would capture Trump’s attention, acknowledging the various metrics Trump monitors, including stock performance.
In response to these concerns, Trump took to social media early Wednesday, making light of Canada’s trade situation. He questioned the rationale behind subsidizing Canada to the extent of over $100 million annually, suggesting it doesn’t make sense. Trump further noted that many Canadians express a desire for their country to become the 51st state, claiming it would result in savings on taxes and military expenses. He has mentioned this idea previously during conversations with Canadian Prime Minister Justin Trudeau.
Canada’s ambassador to the U.S., Kirsten Hillman, highlighted last year’s $75 billion trade deficit with Canada, explaining that a significant portion of Canadian exports to the U.S. comprises energy products, which have seen soaring prices. She indicated that the U.S. relies on Canada for around 60% of its crude oil imports and 85% of its electricity imports. Hillman underscored the need to view trade balances in a broader context, given the size disparity between the two neighboring countries.
Ford also expressed deep concern over Trump’s proposition to initiate “the largest mass deportation program in history.” He assured that measures are in place, stating, “We have a plan ready. We have hundreds of provincial police officers that are prepared to act quickly if necessary at the borders.” Ford indicated that collaboration among local law enforcement, provincial, and federal agencies would ensue to reinforce border security.
Trump’s tariff threats come as a response to what he perceives as the need for Canada and Mexico to stem the flow of migrants and fentanyl into the U.S., even though data shows significantly fewer of these issues originate from Canada compared to Mexico. Following Trump’s remarks, the Canadian government unveiled its border plan, worth a billion dollars, aimed at countering these tariffs. This initiative includes the establishment of a new aerial intelligence task force to monitor the border continuously.
In addition to monitoring efforts, Canada proposes creating a North American “joint strike force” dedicated to combating organized crime that operates across borders. Public Safety Minister Dominic LeBlanc has conveyed a positive outlook regarding discussions with U.S. officials about these plans. “We have a lot of work ahead of us,” LeBlanc stated, while attempting to lessen perceptions that Canada is merely yielding to American demands.
Ford reiterated his intentions to limit electricity exports to Michigan, New York, and Minnesota should the tariffs be enacted. He expressed a desire to increase energy sales but maintained that all options would remain available. He noted Canada’s critical resources, stating that Canada is a crucial supplier of steel, aluminum, and uranium to the U.S., alongside possessing 34 minerals and metals that the Pentagon has a keen interest in.
Daily, goods and services valued at approximately $3.6 billion Canadian dollars cross the border, with Canada being the primary export market for 36 states in the U.S. Ford asserted the need for dialogue with Trump to clarify that Canada is not an adversary. He also mentioned the desire for direct trade agreements with the U.S., separate from any Mexican arrangements.
When it comes to drug trafficking and immigration, the differences at the Canada-U.S. border compared to the U.S.-Mexico border are stark. For instance, U.S. border agents confiscated 43 pounds of fentanyl at the Canadian border last year, while 21,100 pounds were seized at the Mexican border. Notably, most fentanyl in the U.S. is produced by Mexican drug syndicates utilizing precursor chemicals acquired from Asia. Regarding immigration, the U.S. Border Patrol documented 1.53 million encounters with migrants at the southwestern border with Mexico between October 2023 and September 2024, in contrast to merely 23,721 encounters at the Canadian border in the same period.
