In a significant escalation of trade tensions between Canada and the United States, Ontario Premier Doug Ford announced on Tuesday that the province will impose a 25% tariff on electricity sent to 1.5 million homes in Minnesota, Michigan, and New York. This move comes as retaliation to the U.S. administration’s fresh levies, which took effect earlier that day.
Premier Ford confirmed the tariff decision during a press conference at the provincial legislature, stating that the surcharge would apply to all electricity exports to the three states, which rely heavily on power from Ontario. The premier also conveyed a stern warning to U.S. officials, indicating that should these tariffs persist or escalate, Ontario is prepared to take even more drastic measures, including completely cutting off power supplies to these states.
“I’ve written to the governors of Minnesota, Michigan, and New York to notify them of the surcharge,” Ford said, addressing reporters. “If these tariffs continue, and if the Trump administration follows through with additional levies, we will immediately implement this 25% tariff on the electricity we export. We will not hesitate to shut off their power supply altogether.”
This new export tax is Ontario’s direct response to the 25% tariffs imposed by U.S. President Donald Trump on a wide range of Canadian imports, which came into effect on Tuesday. The tariffs, which cover a broad spectrum of goods, are seen as an aggressive move in the ongoing trade dispute between the two countries.
Ontario’s decision to retaliate in this way follows a growing trend of countermeasures from Canada. In addition to the electricity tariff, the province has taken further steps by banning all U.S.-based companies from securing government contracts in Ontario. Furthermore, Premier Ford confirmed that Ontario has canceled its contract with Starlink, the satellite internet service run by Elon Musk’s company, stating, “It’s done; it’s gone.”
Ford also hinted at potential future actions that could affect the broader Canadian economy. In an interview with NBC News, the premier suggested he was prepared to shut down the export of nickel to the United States—a vital resource for U.S. manufacturing. “It will shut down manufacturing because 50% of the nickel used in the U.S. comes from Ontario,” Ford warned.
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This tariff announcement comes as part of Canada’s broader retaliatory measures. Earlier on Tuesday, the Canadian government imposed 25% tariffs on approximately $30 billion worth of U.S. goods. A second round of tariffs, targeting an additional $125 billion worth of U.S. exports, will follow in three weeks. This second phase will hit high-value items such as cars, trucks, steel, and aluminum, marking a significant intensification of the trade conflict.
The dispute between the two nations, particularly regarding tariffs, has created uncertainty within the business community. The move to impose a surcharge on electricity exports and other countermeasures signal that both countries are prepared for a protracted trade war that could have wide-reaching economic consequences.
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