Ontario Premier Retaliates Against Trump’s Tariffs with Electricity Levy, Accusations of Economic Coercion Fly
Ontario Premier Doug Ford escalated the trade dispute with the United States on Monday, fulfilling his promise to impose a 25% tariff on electricity exports to neighboring American states. This move is a direct response to President Donald Trump’s tariffs on Canadian goods, which Ford characterized as a blatant attempt at economic coercion aimed at forcing Canada into becoming a U.S. territory.
Ford, accompanied by Energy Minister Stephen Lecce, announced the new tariff during a press conference, outlining the implications for both Ontario and the affected U.S. states. The electricity targeted by the tariff primarily flows to New York, Michigan, and Minnesota, but the impact will likely be felt by consumers in other neighboring states like Wisconsin as well. The Canadian Broadcasting Corporation (CBC) estimates that at least 1.5 million Americans will experience a surge in their electricity bills as a result of the tariff.
The tariff will add approximately $10 per megawatt-hour to the cost of electricity exported from Canada, generating an estimated $300,000 to $400,000 in daily revenue. This revenue, according to the CBC, will be allocated to support Ontario businesses that have been negatively impacted by the tariffs imposed by the Trump administration.
President Trump’s stance on tariffs has been erratic, with frequent reversals and shifting deadlines. Last week, Trump announced a "pause" on a portion of the 25% tariffs he had previously threatened against Canada, setting a new deadline of April 2. However, the Canadian government has made it clear that it will not reciprocate by pausing its own retaliatory tariffs until Trump completely removes the threat of tariffs.
"Until these tariffs are off the table, until the threat of tariffs is gone for good, Ontario will not relent," Ford stated firmly on Monday. "We will not back down, pausing some tariffs, making last minute exemptions, it won’t cut it. We need to end the chaos once and for all. We need to sit down, work together, and land a fair deal."
Trump initially justified the tariffs by claiming that Canada was allowing fentanyl to be trafficked into the U.S., a pretext widely considered absurd and a thinly veiled attempt to disguise Trump’s true goal of economically harming Canada to facilitate annexation. Reports indicate that less than 1% of fentanyl entering the U.S. originates from Canada. This flimsy justification was ostensibly needed to create a national security argument for the tariffs, the only legal basis for violating the United States–Mexico–Canada Agreement (USMCA).
The USMCA, ironically, was negotiated by Trump himself as a replacement for the North American Free Trade Agreement (NAFTA), initially established in the 1990s under President Bill Clinton. Trump has frequently asserted that the USMCA allows Canada and Mexico to "take advantage" of the U.S., an argument that many find illogical and baseless.
During Monday’s press conference, Ford and Lecce addressed concerns about potential repercussions for the Canadian economy. Lecce assured reporters that Ontario has agreements in place with the province of Quebec that allow them to increase electricity production during peak demand periods, reducing reliance on U.S. imports.
Ford also addressed the possibility of businesses relocating from Canada to the U.S. He noted that even if Trump were successful in encouraging such a move, the U.S. currently lacks the necessary workforce to fill the resulting job vacancies. Ford mentioned discussions with car manufacturers who confirmed that they could not relocate their operations from Canada to the U.S. due to the shortage of available employees.
Ford, a conservative politician who was previously perceived as an ally of Trump, has become an unexpected opponent of the President’s policies. The increasingly hostile rhetoric from the U.S. has deeply angered many Canadians, leading to a wave of anti-American sentiment. This includes instances of Canadians booing the U.S. national anthem at sporting events, and a nationwide boycott of American products, with viral videos showing unsold Lay’s potato chips in grocery stores, despite heavy discounts.
Several Canadian provinces have even removed American alcohol products from store shelves, triggering protests from American alcohol producers. While tariffs may raise prices, allowing producers to still generate revenue, albeit reduced, a complete removal from the market leaves them with no income at all.
Ford emphasized that he has been in contact with numerous Republicans in the U.S. who disapprove of Trump’s trade policies and their negative impact on American businesses.
"I talked to a tremendous amount of Americans," Ford stated at the press conference. "They totally disagree with what President Trump is doing. Stanch Republican Trump supporters totally disagreeing with President Trump on this policy. So I think we have a strong relationship. It goes back over 200 years."
Ford also pointed out the negative impact of Trump’s policies on the stock market, which has experienced significant declines in recent weeks due to the uncertainty and instability created by the President. When asked by a reporter what he would say to President Trump, Ford urged him to consider the stock market’s performance.
"I would say, you know, one of his measuring sticks are the markets," Ford said. "The markets have dropped trillions of dollars. He has to understand. He’s a smart guy. He may like them or dislike them, but make no mistake. He understands the markets."
While Ford attempted to appeal to Trump’s ego, evidence suggests that the President’s understanding of complex economic issues is questionable. The Dow Jones Industrial Average has experienced a significant drop, and there are indications that Trump and his advisors may be deliberately attempting to harm the U.S. economy in order to suppress wages and acquire assets at discounted prices during an economic downturn. When questioned by Fox Business about the possibility of a recession, Trump declined to rule it out, describing the current situation as a "transition" period.
The Canadian government is taking these threats seriously, recognizing Trump’s apparent imperialistic tendencies and the potential danger he poses to liberal democracies around the world. His initial "jokes" about invading Panama, annexing Greenland, and making Canada the 51st state, shortly after his election, are no longer viewed as mere jest. The fact that Trump has not made similar "jokes" against authoritarian regimes like Russia further underscores his skewed priorities. Instead, he has cultivated closer ties with America’s former geopolitical rivals while threatening some of the country’s closest allies.
President Trump represents a threat to the safety and security of not only Americans but also citizens of free countries worldwide. Canada understands this reality and is prepared to defend its sovereignty and economic interests.
