The leader of Canada’s most populous province has announced it is charging 25 per cent more for electricity to 1.5 million Americans in response to US President Donald Trump’s trade war.
The price hikes in Minnesota, New York and Michigan came on the same day China retaliated with an additional 15 per cent tax on key American farm products, including chicken, pork, soy beans and beef.
“I will not hesitate to increase this charge. If the United State escalates, I will not hesitate to shut the electricity off completely,” Ontario Premier Doug Ford said at a news conference in Toronto on Monday.
“Believe me when I say I do not want to do this. I feel terrible for the American people who didn’t start this trade war. It’s one person who is responsible, it’s President Trump.”
Ford said Ontario’s tariff would remain in place despite the one-month reprieve from Trump, noting a one-month pause means nothing but more uncertainty. Quebec is also considering taking similar measures with electricity exports to the US.
Ford’s office said the new market rules require any generator selling electricity to the US to add a 25 per cent surcharge. Ontario’s government expects it to generate revenue of $CA300,000 Canadian dollars ($330,000) to $CA400,000 ($440,000) per day, “which will be used to support Ontario workers, families and businesses”.
The new surcharge is in addition to the federal government’s initial CA$30 billion worth of retaliatory tariffs have been applied on items like American orange juice, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles and certain pulp and paper products.
Mark Carney, Canada’s next prime minister, said Canada would keep those tariffs in place until “the Americans show us respect”.
“We didn’t ask for this fight. But Canadians are always ready when someone else drops the gloves,” Carney said, in a reference to fighting in ice hockey.
“The Americans, they should make no mistake, in trade, as in hockey, Canada will win.”
China strikes back at Trump tariffs with 15% levies targeting US farmers
China’s new tariffs, announced last week, were a response to Trump’s decision to double the levy on Chinese imports to 20 per cent on March 4. China’s Commerce Ministry had earlier said that goods already in transit would be exempt from the retaliatory tariffs until April 12.
Imposing tariffs on imports is a key part of Trump’s agenda. He believes the import taxes can raise money for the Treasury, protect American industries and pressure foreign countries to do what he wants in a range of issues, including immigration and drug trafficking.
On Wednesday, Trump is set to remove exceptions on 25 per cent steel tariffs he imposed in 2018 — effectively raising the taxes — and raise his levy on aluminium from 10 to 25 per cent.
In a bewildering series of announcements last week, Trump slapped tariffs on Canadian and Mexican imports, then delayed many of them for 30 days. Next month, he could plaster “reciprocal tariffs” — meant to raise US tariffs to match higher tariffs imposed by foreign countries — on a wide range of imports from around the world
Ontario’s premier estimated his state’s electricity charge woiuld add about CA$100 a month to the bills of each American affected.
“It needs to end. Until these tariffs are off the table, until the threat of tariffs is gone for good, Ontario will not relent,” Ford said.
Ford said Trump changes his mind every day, but if he continues to attack Canada he will do everything it takes to maximize the pain.
“Republicans, at least the ones I speak to, do not agree with President Trump but they are too scared to go out there and say it publicly,” Ford said. “It’s a shame but we need to end this.”
Trump has urged US automakers to move auto production from Canada and Mexico to the US Last week Trump granted a one-month exemption to 25 per cent tariffs on vehicles and auto parts traded through the North American trade agreement USMCA after speaking with leaders of automakers Ford, General Motors and Stellantis. Ontario is the auto sector hub of Canada.
Ford calls for export taxes on Canadian oil
Trump’s trade war and his talk of making Canada the 51st US state have infuriated Canadians, who are booing the American anthem at NHL and NBA games. Some are canceling trips south of the border, and many are avoiding buying American goods when they can.
Ford’s Progressive Conservative government just won reelection by standing up for Canada against Trump.
Ford said the Canadian province of Alberta should agree to put an export tax on oil. Alberta provides 4.3 million barrels of oil a day to the US
“You want to talk about a Trump card. That will instantly change the game,” Ford said.
“I know the Americans. If all of a sudden their gas prices go up a dollar a gallon they will lose their minds.”
Despite Trump’s claim that the US doesn’t need Canada, nearly a quarter of the oil America consumes per day comes from Canada. About 60 per cent of US crude oil imports are from Canada, and 85 per cent of US electricity imports as well.
Canada is also the largest foreign supplier of steel, aluminium and uranium to the US and has 34 critical minerals and metals that the Pentagon is eager for and investing for national security.
Nearly CA$3.6 billion worth of goods and services cross the border each day.
