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In a twist that no one expected, Canada is ready to cut off energy to the United States if Donald Trump decides to impose drastic tariffs at the border. Tensions between Canada and the US are rising after strong statements by Doug Ford, Premier of Ontario.
In a move that could rock the U.S. economy, Canada has said it is prepared to cut off up to 85 percent of its energy supplies to the U.S. if former President Donald Trump moves forward with imposing 25 percent tariffs on all Canadian goods. The threat comes in response to Trump’s statements about implementing sweeping tariffs aimed at curbing the flow of migrants and drugs across the border.
Serious threat: Power cuts on the cards
Doug Ford, Premier of Ontario and leader of the opposition Conservative party, said Canada's largest province will not hesitate to use the energy as a tool of retaliation. “We’re going to put together our list, and I’m sure the other provinces will as well. But we’ll go all the way, depending on how far this goes. We’ll go as far as cutting off their power,” Ford said after a meeting with Prime Minister Justin Trudeau and other provincial counterparts.
The Canadian threat is particularly acute considering that 60 percent of U.S. crude oil imports come from Canada, and a staggering 85 percent of American electricity imports are also supplied by the northern neighbor. About $3,6 billion worth of goods and services cross the border daily, making it a vital pillar of trade between the two countries.
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Economic impact and global responses
Ford spokeswoman Grace Lee noted that Ontario powered 1,5 million U.S. homes in 2023 and is a major energy exporter to states including Michigan, Minnesota and New York. “We will use every tool in our toolbox to fight back. We can’t sit back and roll over. We simply won’t do it as a country,” Ford stressed.
The U.S. response was not immediately clear, with Trump’s transition team not immediately responding to a request for comment on the Canadian threat to cut off energy. Meanwhile, the Canadian government, led by Justin Trudeau, has warned that the tariffs would be “absolutely devastating” to Canada’s economy and would cause significant hardship for Americans, with higher prices for food, clothing, automobiles and other essential goods.
Economists are already warning that the 25% tariffs will likely be passed on to consumers, exacerbating inflation and hurting millions of Americans. The Produce Distributors Association in Washington has warned that prices for fresh fruits, vegetables and other essential goods would rise sharply, hurting U.S. farmers in particular.
Beyond the economic implications, the energy dispute between Canada and the U.S. highlights the complex interdependence between the two countries, which together handle about C$3,6 billion in daily trade. Any disruption to the power supply could have far-reaching repercussions, affecting everything from households to major industries in the U.S.
With negotiations still uncertain and the possibility of an escalation still present, energy remains at the center of one of the most tense trade relations between Canada and the United States in recent years. How this crisis plays out will determine not only the future of bilateral relations, but also the well-being of millions of consumers and businesses on both sides of the border.
