Ontario leader threatens to halt energy exports to US if Trump imposes tariffs

Ontario leader threatens to halt energy exports to US if Trump imposes tariffs

The leader of Canada’s most populous province says he’s prepared to halt energy exports to the United States, warning that other premiers “need to be ready to fight” as threats escalate ahead of possible American tariffs.

The Ontario premier, Doug Ford, says he’s weighing options to fight back against a 25% levy on all Canadian goods that the US president-elect Donald Trump has pledged to implement when he assumes office.

Following a meeting with the nation’s premiers and the prime minister, Justin Trudeau, Ford said other leaders were also drawing up lists of exports that could be halted.

“But we will go to the full extent, depending how far this goes, we will go to the extent of cutting off their energy, going down to Michigan, going down to New York state and over to Wisconsin,” said Ford. “I don’t want this to happen, but my number one job is to protect Ontario, Ontarians and Canadians as a whole.”

Ontario is also among the most vulnerable to American tariffs because roughly 85% of its exports – including billions in automotive parts – are sent to a handful of US states. As a result, Ford has emerged as the Canadian politician most vocal about the devastating effects the tariffs would have on hundreds of billions of shared trade.

“We need to be ready. We need to be ready to fight,” said Ford. “This fight is coming 100% on January 20 or January 21.”

Ford’s threat aims to highlight both the integrated nature of North American economies and also to put pressure on state governors. But is unclear how much Ford could follow through on his pledge to cut electricity exports, given that premiers do not make international energy policy.

Canada supplies roughly 60% of all American oil imports and even more of its electricity imports. In 2022, Canada’s revenue from electricity exports to the United States hit a record high of C$5.8bn. Quebec is the largest exporter, with Ontario following second at 13.9m megawatt-hours of power sent south.

“We will use every tool in our tool box to fight back,” said Ford. “We can’t sit back and roll over. We just won’t as a country. And isn’t this a shame, our closest friends and allies.”

Trump threatened last month to apply the devastating levies of 25% on all goods and services from both Mexico and Canada, vowing to keep them in place until “such time as drugs, in particular fentanyl, and all illegal aliens stop this invasion of our country!”

Last week, Trump seemed to take joy in the panicked response from Canadian officials, calling Trudeau Canada’s “governor” of a potential “51st” state.

Source: theguardian.com