Trump’s tariff warning met with threat from Ontario that would make energy ‘unaffordable’ in Michigan & U.S.

On October 16, 2022, power pylons in Mississauga, Ontario, Canada, display colorful trees during the fall season. (Image courtesy of NurPhoto/Creative Touch Imaging Ltd. via Getty Images)

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    Canada’s most populated province says it could block the export of electricity to the U.S.
    
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    The northern country provides electricity to over 1.5 million homes.
    
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    Ontario Premier Doug Ford said it would make electricity unaffordable for Americans.
    

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  Canada’s most populated province says it could block the export of electricity to the U.S.
  
• 
  The northern country provides electricity to over 1.5 million homes.
  
• 
  Ontario Premier Doug Ford said it would make electricity unaffordable for Americans.
  

If President-elect Donald Trump’s tariffs are applied to Canada, Michigan citizens may soon have to pay significantly more for electricity since the country’s most populous province claims it will limit electricity exports.

The government is considering limiting electricity exports to Michigan, New York State, and Minnesota, according to Ontario Premier Doug Ford. He claimed that this would make electricity pricey for Americans.

When Ford said, “It’s a last resort,” “I don’t believe Trump, the president-elect, wants that to occur. We are communicating with the United States. We will use every weapon in our arsenal to protect Canadians and Ontarians if you invade Ontario and ruin the lives of Canadians and residents. Hopefully, it won’t come to that.

Unless they stop the drug and migratory flow, last month.

He complained last month that “thousands of people are pouring through Mexico and Canada, bringing Crime and Drugs at levels never seen before,” despite the fact that violent crime has decreased from pandemic highs. “On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders,” he wrote.

How did Trump respond?

When questioned about Ford’s remarks on Thursday, Trump seemed unconcerned.

“It’s acceptable if he does that. When questioned about Ford’s comments on the New York Stock Exchange floor, Trump told CNBC, “That’s fine.”

Trump said that Canada is being subsidized by the US.

“We’re really good together. We shouldn’t have to subsidize a nation, even though I have a lot of friends in Canada. Over $100 billion is being subsidized annually. That shouldn’t be necessary,” Trump stated.

Trump informed him off camera that they aim to work things out with Canada, according to the CNBC reporter.

Ontario threatens U.S. alcohol ban

The threat of prohibiting the export of energy also included prohibiting the import of alcohol produced in the United States.

According to a senior government official, Ontario is considering limiting the province’s largest retailer and global alcohol buyer, the liquor control board, from purchasing alcohol produced in the United States.

How much oil and electricity does Canada supply the U.S.?

Energy accounts for around one-third of Canada’s trade with the United States; in 2023, Ontario was a significant exporter to Michigan, Minnesota, and New York, and it supplied electricity to 1.5 million houses in the United States.

The United States receives more oil from Canada than from any other nation. About 85% of the power and 60% of the crude oil imported into the United States come from Canada.

According to Ford, who chairs a council of premiers representing Canada’s ten provinces and three territories, “if you put a 25% tariff on oil from Alberta that increases every gallon of gasoline by one dollar.”Last year, Canada exported energy products to the United States for $170 billion. It also contains 34 essential metals and minerals that the Pentagon wants.

Following their meeting with the premiers on Wednesday, Ontario’s Deputy Prime Minister Chrystia Freeland stated that several provincial premiers, particularly those who export vital minerals to the United States, expressed support for a strong reaction to the tariffs.

Will Canada cut off oil exports to America?

In response to a question about whether Canada is thinking about stopping its oil shipments to the United States, Freeland stated that “obviously other ideas were discussed as well” without mentioning oil.

Every day, goods and services valued at around $2.7 billion (3.6 billion Canadian dollars) pass the border. For 36 U.S. states, Canada is their biggest export destination.

The incoming Trump administration will be given information about those border plans in the next few days, according to Canadian Public Safety Minister Dominic LeBlanc, who just had dinner with Trump at Mar-a-Lago with Prime Minister Justin Trudeau.

The trade deficit was also increased, according to U.S. Ambassador Kristen Hillman, who stated that in 2023, the U.S. had a $75 billion trade deficit with Canada.

How will a 25% tariff impact Americans?

This week, Trudeau declared that tariffs imposed by the United States would be “absolutely devastating” for the Canadian economy, but they would also cause significant suffering for Americans.

According to economists, businesses would be forced to pass on the increased expenses, drastically raising the pricing of products like food, clothing, cars, alcohol, and other items.

According to the Produce Distributors Association, a trade organization located in Washington, tariffs will increase the cost of fresh produce and harm American farmers when the nations retaliate. In 2018, Canada responded to increased charges on Canadian steel and aluminum by imposing duties on the United States.

How is Canada responding to the Trump’s threats?

According to Canadian officials, combining Canada and Mexico is unfair. Last fiscal year, U.S. customs officers found 43 pounds of fentanyl at the Canadian border, while they found 21,100 pounds at the Mexican border.

Mexican drug gangs employ precursor chemicals that are imported from Asia to make the majority of the fentanyl that enters the United States, where it causes over 70,000 overdose deaths each year.

In comparison to 23,721 interactions at the Canadian border between October 2023 and September 2024, the U.S. Border Patrol reported 1.53 million encounters with irregular migrants at the southwest border with Mexico.

The Source: Details of this story were verified by the Associated Press.

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