Ontario’s Premier, Doug Ford, has announced a significant increase in electricity prices for 1.5 million Americans, implementing a 25% surcharge as a reaction to the ongoing trade tensions initiated by US President Donald Trump. This price hike impacts residents of states such as Minnesota, New York, and Michigan, coinciding with China’s introduction of a 15% tariff on major US agricultural products, including beef and pork.
At a press conference in Toronto, Ford stated, “I will not hesitate to increase this charge. If the United States escalates, I will not hesitate to shut the electricity off completely.” He expressed his reluctance to impose such measures but attributed the escalation to Trump’s actions, asserting, “It’s one person who is responsible.”
Despite a brief reprieve from the trade war, Ford intends to keep the tariff in place, arguing that mere pauses create more uncertainty. Quebec is also contemplating similar electricity export tariffs. Ontario’s measures are expected to generate significant revenue, projected at about CA$300,000 to CA$400,000 daily, intended to aid local workers and businesses.
This surcharge adds to other Canadian tariffs totalling CA$30 billion on American products ranging from orange juice to automobiles. Mark Carney, the leader of the Liberal Party, asserted that Canada will maintain retaliatory measures until the US shows “respect” and mentioned that in trade matters, Canada is always prepared to defend its interests.
The trade conflict escalated as Trump implemented tariffs on Canadian and Mexican goods, prompting retaliatory tariffs from China, which exempt goods in transit until mid-April. Ford commented that ongoing negotiations and Trump’s erratic decision-making contribute to confusion and instability, urging decisive action to resolve the issues and end the tariff war.
Ford’s latest estimates suggest the electricity charge could add approximately CA$100 to monthly bills for affected American households. He emphasised the necessity of maintaining these measures until the threat of US tariffs is eliminated entirely, pointing out that many Republicans secretly oppose Trump’s policies but lack the courage to voice their dissent publicly.
In light of Trump encouraging US automakers to relocate production from Canada, Ford suggested that Alberta should implement export taxes on oil, which could drastically affect US gas prices and further influence the trade dynamics.
The unrest stirred by Trump’s trade tactics has led to a rift in cross-border relations, with Canadians increasingly boycotting American goods and expressing their dissent at sports events. Many Canadians are cancelling trips to the US, highlighting the deteriorating sentiment against American policies.
In conclusion, the trade war initiated by Trump has led to substantial economic repercussions and heightened tensions between Canada and the US, prompting proactive measures from Canadian provinces to safeguard their interests.