Ontario warned on Thursday that the province would restrict electricity exports to the U.S. if President-elect Donald Trump imposes tariffs on Canadian products.
Ontario, Canada's most populated province, is a major exporter of electricity to Michigan, Minnesota and New York, according to The Associated Press, powering 1.5 million homes in 2023. Canada altogether exports more to the U.S. than any other country — making up about 60% of crude oil imports and 85% of electricity imports.
Trump has threatened to impose a 25% tariff on Canadian and Mexican imports if the countries fail to reduce the flow of migrants and drugs into the U.S.
Doug Ford, the premier of Ontario, said Ontario is considering restricting electricity to the three U.S. states. The move is a “last resort," he said, and would make electricity unaffordable for many Americans.
“We’re sending a message to the U.S.,” Ford said at a press conference. “If you come and attack Ontario, you attack the livelihoods of people in Ontario and Canadians, we are going to use every tool in our tool box to defend Ontarians and Canadians. Let’s hope it never comes to that.”
When CNBC asked Trump for a response, he said, “That’s OK if he does that. That’s fine.”
“The United States is subsidizing Canada and we shouldn’t have to do that,” Trump said, repeating claims that the U.S. subsidizes billions for Canada annually. “And we have a great relationship. I have so many friends in Canada, but we shouldn’t have to subsidize a country.”
On Monday, Canadian Prime Minister Justin Trudeau said he will retaliate against tariffs as the country did during Trump's first administration.
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