Escalating Trade Dispute Sees Retaliatory Measures from Ontario Government

Ontario Premier Doug Ford imposes a 25% electricity export tax in retaliation for U.S. tariffs, escalating trade tensions with the U.S.

THUNDER BAY – BUSINESS & POLITICS – The trade tensions between Canada and the United States have taken a dramatic turn as Ontario Premier Doug Ford pushes back against U.S. tariffs, imposing a 25% electricity export tax on power supplied to three American states. The move follows U.S. President Donald Trump’s decision to enforce sweeping 25% tariffs on Canadian goods, triggering a fierce response from both the Ontario and federal governments.

Ford Faces U.S. Pressure But Refuses to Back Down

U.S. Commerce Secretary Howard Lutnick held a tense and aggressive call with Premier Ford on Tuesday, urging Ontario to reconsider the electricity tax aimed at New York, Michigan, and Minnesota. However, Ford stood firm, making it clear that Ontario would not back down as long as Trump’s tariffs remained in place.

“This surcharge is just the beginning of our response,” Ford said. “If Trump continues with his reckless trade war, Ontario is prepared to escalate.”

Ontario’s Retaliatory Measures Take Shape

The electricity export tax will affect power supplied to 1.5 million U.S. homes and businesses, though the exact implementation date remains unclear. Ford also hinted at the possibility of cutting off electricity exports entirely if tariffs persist into April.

Additionally, Ford’s government is taking further steps to reduce Ontario’s reliance on U.S. trade, including:
✅ A ban on U.S. companies bidding on Ontario government contracts
✅ Encouraging municipalities to block U.S. suppliers
✅ Scrapping a $100 million agreement with Elon Musk’s Starlink
✅ Considering halting nickel exports to the U.S.

“We are using every tool in the toolbox,” Ford stated. “Ontario will not be bullied, and we will fight back.”

The Economic Fallout – Higher Prices, Job Losses Loom

The federal government has also responded, announcing immediate retaliatory tariffs on $30 billion worth of U.S. goods, with an additional $125 billion in tariffs expected within three weeks. While these measures are intended to protect Canadian industries, consumers and businesses will feel the impact in the coming months:

🔺 Higher grocery prices due to rising costs for imported U.S. food
🔺 Potential job losses in industries affected by declining U.S. trade
🔺 Strained supply chains for Canadian manufacturers relying on American raw materials

Auto Industry at Risk – Ford Warns of Plant Closures

Premier Ford, in a CNN interview, warned that the tariffs could devastate North America’s auto sector, with assembly lines shutting down within days due to supply disruptions.

“We will see auto plants close,” Ford said. “Not just in Canada but across the U.S. too. The economic damage will be severe.”

Ontario to Ban U.S. Alcohol Sales

As part of the retaliatory measures, the LCBO will remove American alcohol products from store shelves, impacting 3,600 products from 35 U.S. states.

“They’re coming off the shelves,” Ford confirmed. “We have to stand up for Ontario.”

Public and Political Response – A Surge in Canadian Patriotism

Across Canada, public backlash against U.S. products is growing as consumers begin to boycott American goods in protest of Trump’s trade policies.

“Canadians are livid. We see the U.S. as family, and this betrayal is infuriating,” Ford said.

Meanwhile, Toronto’s mayor has voiced support for a “Team Canada” approach, urging unity in pushing back against Trump’s economic aggression.

What’s Next? Ontario Ready to Escalate Further

Ford has signaled that more retaliatory actions could be on the way, including:
🚨 Halting nickel exports to the U.S. – 50% of America’s nickel comes from Ontario, and cutting off supply could cripple U.S. manufacturing.
🚨 Shutting down manufacturing links – Ontario could redirect key resources away from American industries.

“If necessary, we’ll shut it all down,” Ford warned. “Trump is playing a dangerous game, and the fallout will be felt on both sides of the border.”

Conclusion – A Trade War with No Easy Resolution

With Ontario and the federal government locked in a standoff with the U.S., uncertainty looms for businesses, consumers, and workers. The next few weeks will determine whether tensions ease or if the trade war spirals into deeper economic conflict.

One thing is certain: Premier Doug Ford is not backing down.