Canada Threatens Energy Retaliation Against Potential U.S. Tariffs
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Tensions are escalating between Canada and the United States as the incoming Trump administration signals the imposition of meaningful tariffs on Canadian goods. Ontario Premier Doug Ford, speaking after a meeting with Prime Minister Justin Trudeau and other provincial leaders, issued a stark warning: Canada may retaliate by cutting off energy exports to its southern neighbor.
President-elect Trump has threatened a 25% tariff on all products entering the U.S. from Canada and mexico unless the flow of migrants and drugs across the border is curtailed. Ford, though reluctant to see such a scenario unfold, stated, ”We will go to the full extent, depending on how far this goes. We will go to the extent of cutting off their energy.” He added, “We will use every tool in our toolbox to fight back.We can’t sit back and roll over. We just won’t as a country. And isn’t this a shame, our closest friends and allies.”
The potential impact of such a move is significant. Canada supplies approximately 60% of U.S. crude oil imports and a staggering 85% of its electricity imports. While Ford’s statement initially lacked clarity regarding whether this energy embargo would be a nationwide Canadian response or specific to Ontario, a spokeswoman for the Premier confirmed the topic was discussed during the leaders’ meeting.
“Premier Ford can only speak on behalf of Ontario, but it’s an area of provincial jurisdiction that we would certainly look at,” stated Grace Lee, Ford’s spokeswoman. She emphasized Ontario’s significant role as a power provider, noting its contribution to 1.5 million U.S. homes in 2023 and its substantial electricity exports to Michigan, Minnesota, and New York.
The pending tariffs also threaten Canada’s role as the largest foreign supplier of steel, aluminum, and uranium to the U.S. furthermore, Canada possesses 34 critical minerals and metals crucial to the Pentagon’s national security interests.
Deputy Prime Minister Chrystia Freeland echoed the sentiment of forceful retaliation. “Canada, of course, will respond to unjustified tariffs,” she declared. She highlighted the support of several provincial premiers for a robust response, specifically including critical minerals in their arsenal. While Freeland refrained from explicitly mentioning oil, she acknowledged, “Obviously other ideas were discussed as well” when queried about a potential oil export cutoff to America.
With approximately one-third of Canada’s trade directed to the U.S., the potential economic implications of this escalating trade dispute are vast. Nearly $3.6 billion Canadian (US $2.7 billion) worth of goods and services cross the Canada-U.S. border daily, underscoring the immense interconnectedness of the two economies.
