Incoming U.S. president Donald Trump is brushing off Ontario鈥檚 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.
鈥淭hat鈥檚 OK if he that does that. That鈥檚 fine,鈥� Trump told American network CNBC when asked Thursday about Ford鈥檚 remarks on the floor of the New York Stock Exchange.
鈥淭he United States is subsidizing Canada and we shouldn鈥檛 have to do that,鈥� Trump added.
鈥淎nd we have a great relationship. I have so many friends in Canada, but we shouldn鈥檛 have to subsidize a country,鈥� he said, claiming this amounts to more than US$100 billion annually in unspecified subsidies.
Meanwhile, an official in the Ford government says it鈥檚 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.
鈥淚t鈥檚 a last resort,鈥� Ford said. 鈥淲e鈥檙e 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鈥檚 hope it never comes to that.鈥�
Ontario Energy Minister Stephen Lecce said the province would rather have co-operation with the U.S., but has mechanisms to 鈥渆nd power sale into the U.S. market鈥� the day Trump takes office on Jan. 20.
Alberta Premier Danielle Smith ruled out following suit.
鈥淯nder no circumstances will Alberta agree to cut off oil and gas exports,鈥� she said. 鈥淥ur approach is one of diplomacy, not threats.鈥�
Michael Sabia, president and CEO of Hydro-Qu茅bec, said 鈥渋t鈥檚 not our current intention鈥� to cut off Quebec鈥檚 exports to Massachusetts or New York state, but he conceded it might be possible.
鈥淥ur intention is to respect those contracts, both because they鈥檙e legally binding, but also because it鈥檚 part of, in our view, a sound relationship with the United States,鈥� he said. 鈥淚t鈥檚 a questionable instrument to use in a trade conflict.鈥�
Manitoba Premier Wab Kinew would not directly say whether Manitoba would threaten to withhold hydroelectric exports.
鈥淲e are preparing our list and starting to think through what those options should look like,鈥� he said. 鈥淚鈥檓 not going to make specific news today about items that we鈥檙e looking at.鈥�
Kinew added that some premiers felt retaliatory measures wouldn鈥檛 work in a call Trudeau held Wednesday.
Newfoundland and Labrador Premier Andrew Furey said 鈥渨e have no interest in stopping鈥� the export of energy to the U.S., adding that a trade war would hurt both countries.
鈥淲e hope it is just bluster; we鈥檙e preparing as if it is not,鈥� he said.
Canada supplies more oil to the U.S. than any other country. About 60 per cent of U.S. crude oil imports are from Canada, and 85 per cent of U.S. electricity imports as well.
Canada sold $170 billion worth of energy products last year to the U.S. It also has 34 critical minerals and metals the Pentagon is eager for.
Trump has threatened to impose a 25 per cent tax on all products entering the United States from Canada and Mexico unless they stem the flow of migrants and drugs.
Canadian officials have said it is unfair to lump Canada in with Mexico.
U.S. customs agents seized 43 pounds of fentanyl at the Canadian border last fiscal year, compared with 21,100 pounds at the Mexican border.
Canada since has promised more border security spending to address Trump鈥檚 border concerns. Ford said that will include more border and police officers, as well as drones and sniffer dogs.
This report by The Canadian Press was first published Dec. 12, 2024.
鈥� With files from The Associated Press, Liam Casey in Toronto, Lisa Johnson in Edmonton and Steve Lambert in Winnipeg.
Dylan Robertson, The Canadian Press
