Ontario’s threat to limit electricity exports in response to tariffs on Canadian goods has been dismissed by incoming U.S. President Donald Trump. At the same time, the province has floated the idea of effectively restricting the sale of American alcohol.
Ontario Premier Doug Ford said on Wednesday that if Trump imposes a 25% tariff on Canadian imports, Ontario is considering countermeasures, including limiting electricity exports to Michigan, New York, and Minnesota.
In response, Trump told American network CNBC on Thursday, “If they do that, then that’s what will happen. That’s fine. The United States is subsidizing Canada, and we shouldn’t be doing that. Our relationship is great. I have a lot of friends in Canada. But we shouldn’t be subsidizing a country.”
Meanwhile, an official from the Ford administration said that the Liquor Control Board of Ontario is considering restrictions on purchasing U.S.-made alcohol. The Crown corporation is the world’s largest buyer of alcohol.
The province has also said it may impose controls on the export of critical Canadian minerals needed for electric vehicle battery production. Additionally, it may introduce barriers to provincial procurement for American companies.
On Thursday, Ford strongly supported the idea of limiting energy exports. The province has stated that Ontario exports enough electricity to power 1.5 million homes in three U.S. states.
“This is a last resort,” Ford said. “We are sending the message to the United States: If you come and attack Ontario, that is an attack on the livelihoods of Ontarians and Canadians. We will use every tool at our disposal to protect Ontarians and Canadians. But let’s hope it never comes to that.”
Ontario’s Energy Minister Stephen Lecce stated that the province prefers to cooperate with the U.S. However, he noted that the mechanism to sell electricity to the U.S. is already in place for when Trump formally takes office on January 20.
