Saturday, December 21, 2024

Ford threatens to cut off Ontario’s energy supply to U.S. if Trump follows through on tariffs

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Premier Doug Ford says Ontario could cut off energy to the U.S. if president-elect Donald Trump makes good on a threat to impose steep tariffs on Canadian goods.

Ford told reporters at Queen’s Park that federal Finance Minister Chrystia Freeland will put together a list of items upon which Canada could impose retaliatory tariffs and so will the Ontario government.

“We will go to the full extent depending how far this goes. We will go to the extent of cutting off their energy, going down to Michigan, going down to New York State and over to Wisconsin. I don’t want this to happen, but my number one job is to protect Ontario, Ontarians and Canadians as a whole since we’re the largest province,” Ford said.

“Let’s see what happens as we move forward. But we’ll use every tool in our toolbox, including cutting them off energy that we’re sending down there,” he added.

Ford and other provincial and territorial premiers met with Prime Minister Justin Trudeau virtually on Wednesday to discuss a threat by Trump to impose 25 per cent tariffs on goods coming in from Canada unless the country improves security along the Canada-U.S. border.

Ontario powered 1.5 million homes in the U.S. in 2023

Canada has vowed to increase border security despite a lack of evidence for Trump’s claims about illicit fentanyl pouring into the U.S. from Canada.

Ford said putting tariffs on Canadian goods would be a big problem for Canada and the U.S. Asked why he is talking about retaliatory tariffs, he said Trump appears serious about wanting to impose tariffs and the talk is not bluster.

Prime Minister Justin Trudeau dined with U.S. president-elect Donald Trump on Friday night. Trump described the meeting as 'very productive' on his social media platform Truth Social.

Prime Minister Justin Trudeau dined with U.S. president-elect Donald Trump on Friday night. Trump described the meeting as ‘very productive’ on his social media platform Truth Social.

Prime Minister Justin Trudeau dined with U.S. president-elect Donald Trump earlier this month. (@JustinTrudeau/X)

“I think he’s being a little more aggressive than he was in the past, and I say this respectfully to the president, he’s a different type of cat, to say the least,” Ford said.

“And maybe I’m a different type of cat, but you know, I’ve never seen, not so much aggression, but so matter of fact. He didn’t come across this way last time. And it’s not helpful for both sides of the border.”

It wasn’t immediately clear if Ford was talking about all Canadian provinces cutting off energy exports to the U.S. or just his province. But a spokeswoman for Ford, Grace Lee, told The Associated Press it was raised in the call between Trudeau and the provincial premiers.

“Premier Ford can only speak on behalf of Ontario, but its an area of provincial jurisdiction that we would certainly look at,” Lee said in an email.

Lee noted Ontario powered 1.5 million homes in the U.S. in 2023 and is a major exporter of electricity to Michigan, Minnesota and New York.

Trump’s transition team did not immediately respond to The Associated Press to a request for comment on the threat.

About a third of Canada’s trade to the U.S. is energy.

Nearly $3.6 billion Canadian ($2.7 billion US) worth of goods and services cross the border each day. Canada is the top export destination for 36 U.S. states.

Ontario to support efforts to strengthen border

As for the border, Ford said it’s a federal responsibility but the province will support efforts to strengthen it in the face of the tariff threat.

“Folks, this is coming…and we need to be prepared. We need to stand as a country. We need to stand united as Canadians and work hand-in-hand and shoulder-to-shoulder.”

Ford said he asked Trudeau for more Canada Border Services Agency officers and RCMP officers. He said the federal government has agreed to “more boots on the ground” in Ontario and is prepared to fulfil his request for better communication among police agencies, more drones at the border and more patrol dogs.

The meeting with the premiers was the first since Trudeau had dinner with the incoming U.S. president at his Florida estate.

Ford said the federal government made clear it has a plan to address problems at the border, but it has to be implemented.

Doug Ford on CNBC's Power Lunch 1Doug Ford on CNBC's Power Lunch 1

Doug Ford on CNBC’s Power Lunch 1

Ford discussed the impending meeting with Trudeau on the U.S. channel CNBC on Wednesday, saying: ‘We’re going to hold his feet to the fire.’ (CBC)

Earlier on Wednesday, Ford discussed the impending meeting with Trudeau on the U.S. channel CNBC, saying: “We’re going to hold his feet to the fire.”

‘We aren’t the problem’: Ford

Ford added that Ontario would love to continue to ship its energy to the U.S.

“All I’m saying to the president is, we aren’t the problem,”  Ford told host Kelly Evans on CNBC’s Power Lunch.

“China is the problem. Mexico is the problem. China is shipping parts and cars over to Mexico and Mexico is slapping on ‘Made in Mexico’ stickers on, shipping them up to the U.S. and Canada, costing American and Canadian jobs,” he added.

“We’re just so much stronger together. We’re there to strengthen our relationship, not hurt our relationship.”

In addition to interviews with U.S. media, Ford’s government has launched a multimillion-dollar American ad campaign touting economic and cultural ties between the province and the U.S.

Meanwhile, Vic Fedeli, Ontario Economic Development Minister, was in Washington, D.C., on Monday to meet with American officials. He said it was a successful trip.

“We really did talk about how interlinked our economies are,” Fedeli said.

“And I think, in some cases, that came as a very complete surprise, the fact that 60 per cent of all the oil they import in the U.S. comes from Canada. Putting a 25 per cent tariff on 60 per cent of your import — your price of gasoline would go up astronomically.”

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