OTTAWA — Incoming U.S. president Donald Trump is brushing off Ontario’s threat to restrict electricity exports in retaliation for sweeping tariffs on Canadian goods, as the province floats the idea of effectively barring sales of American alcohol.
On Wednesday, Premier Doug Ford said Ontario is contemplating restricting electricity exports to Michigan, New York state and Minnesota if Trump follows through on a threat to impose a 25 per cent tariff on imports from Canada.
“That’s OK if he that does that. That’s fine,” Trump told American network CNBC when asked Thursday about Ford’s remarks on the floor of the New York Stock Exchange.
“The United States is subsidizing Canada and we shouldn’t have to do that,” Trump added.
“And we have a great relationship. I have so many friends in Canada, but we shouldn’t have to subsidize a country,” he said, claiming this amounts to more than US$100 billion annually in unspecified subsidies.
Meanwhile, an official in the Ford government says it’s considering restricting the Liquor Control Board of Ontario from buying American-made alcohol. The province says the Crown agency is the largest purchaser of alcohol in the world.
The province also says it could restrict exports of Canadian critical minerals required for electric-vehicle batteries, and bar American companies from provincial procurement.
Ford doubled down Thursday on the idea of cutting off energy exports. The province says that in 2013, Ontario exported enough energy to power 1.5 million homes in those three states.
“It’s a last resort,” Ford said. “We’re sending a message to the U.S. (that if) you come and attack Ontario, you attack 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.”
Ontario Energy Minister Stephen Lecce said the province would rather have co-operation with the U.S., but has mechanisms to “end power sale into the U.S. market” the day Trump takes office on Jan. 20.
Alberta Premier Danielle Smith ruled out following suit.
“Under no circumstances will Alberta agree to cut off oil and gas exports,” she said. “Our approach is one of diplomacy, not threats.”
Michael Sabia, president and CEO of Hydro-Québec, said “it’s not our current intention” to cut off Quebec’s exports to Massachusetts or New York state, but he conceded it might be possible.
“Our intention is to respect those contracts, both because they’re legally binding, but also because it’s part of, in our view, a sound relationship with the United States,” he said. “It’s a questionable instrument to use in a trade conflict.”