President Donald Trump recently threatened to impose tariffs on Canada and Mexico, a move that has stirred significant tension between the United States and its northern neighbor. Although Trump delayed most tariffs on these countries, he maintained some, citing concerns over fentanyl crossing into America. The threat of increased tariffs, rising from an initial 25%, looms if Canada and Mexico do not assist in addressing this issue.
Canada's economy is particularly vulnerable in this scenario due to its substantial reliance on US exports. An escalation in the trade war could potentially plunge Canada into a recession. Trump has also indicated that he might impose additional tariffs on Canadian dairy and lumber, equating them to the duties Canada places on US goods.
Ontario Premier Doug Ford responded firmly to Trump's tariff threats, stating he would shut off electricity to the US if the situation escalated further.
"If the United States escalates, I will not hesitate to shut the electricity off completely," – Doug Ford
Ford announced his plan to implement a 25% surcharge on electricity exports to New York, Minnesota, and Michigan starting Monday. This surcharge is expected to increase household and business electricity bills by around $100 per month. This move marks a significant step in the unfolding trade skirmish, as Ford aims to counteract the economic pressures from US tariffs.
The Premier has made multiple appearances on US cable news in recent weeks, promoting his assertive stance against Trump's tariff policies. Ford emphasized that his actions are reluctantly taken, as he sympathizes with American citizens caught in the crossfire of this trade dispute.
"Believe me when I say I do not want to do this, I feel terrible for the American people, because it’s not the American people who started this trade war. It’s one person who’s responsible. That’s President Trump." – Doug Ford
Trump, on his part, acknowledged that the trade war is not the fault of the American public but rather a strategic decision led by himself. The President has remained firm in his approach, arguing for stricter measures unless cooperation from Canada and Mexico is secured.
