Ontario’s premier says Canada may cut off US energy supplies in response to Trump’s tariffs

The premier of Canada’s most populous province threatened Wednesday to cut off energy supplies to the United States if President-elect Donald Trump implements proposed tariffs on Canadian goods. The bold move highlights rising tensions between the two countries as they grapple with potential trade conflicts.

“We’ll go to the full extent depending on how far it goes,” Ontario Premier Doug Ford said during a news conference. “We’ll go as far as cutting off power, going to Michigan, then down to New York state, then down to Wisconsin.” Press conference following a virtual meeting with Canadian Prime Minister Justin Trudeau and other provincial premiers to discuss Trump’s tariff threat. “I don’t want this to happen, but my first job is to protect Ontario, Ontario and Canadians as a whole because we are the largest province.”

Trump threatened to do so in November Imposing an all-inclusive tariff of 25%. on all products coming from Canada and Mexico unless the two countries take action to reduce the flow of drugs and unauthorized immigrants into the United States.

The Canadian government said it is considering spending the equivalent of more than $700 million to better protect the border. In an effort to avoid new US tariffs, the plan would increase the number of officers and purchase additional equipment, such as helicopters and drones, to tighten border crossings.

Ford said his province, Canada’s federal finance minister and other provinces will develop a list of items on which the country could impose retaliatory tariffs against the United States.

“We need to be ready to fight,” he told reporters, referring to the date of Trump’s inauguration. “This battle will come 100% on January 20 or 21,” referring to the date of Trump’s inauguration, “and we do not know how far this battle will reach.” He goes.”

Both Canada and the United States would lose

Analysts warn that competing tariffs would hurt the US and Canadian economies. Canada supplies the United States with natural gas and nearly 20% of the crude oil used by its southern neighbour. Patrick De Haan, head of oil analysis at GasBuddy, predicted higher gas prices in the United States It could jump 30 to 40 cents per gallonPerhaps as high as 70 cents, shortly after Trump’s tariffs take effect.

In 2023, Ontario also directly powers 1.5 million US homes, and is a major energy exporter to Michigan, Minnesota and New York.

Midwestern countries in particular could face serious risks if Trump’s plan for tariffs on Canada, Mexico, and China goes into effect. Michigan and Illinois rely heavily on imports from Canada, Mexico and China, which account for 19% and 12% of their state’s gross domestic product, respectively, according to analysts at Fitch Ratings Group. Michigan, which produces approximately 19% of cars sold in the United States, is particularly dependent on cross-border trade. Meanwhile, Illinois, home to the nation’s fourth-largest crude oil refinery, gets most of its crude oil from Canada.

According to a recent analysis by Fitch Ratings, “If enacted specifically as proposed, the broad tariffs proposed by President-elect Trump could constitute a notable economic shock with tariff rates rising to levels not seen in the United States since the Great Depression.”

Experts also warn that tough US tariffs are likely to push the Canadian economy into recession in 2025, causing inflation to rise and forcing the Bank of Canada to halt interest rate cuts next year. According to a recent report by Michael Davenport, an economist at Oxford Economics, Canada’s energy, automotive and heavy manufacturing sectors will be hardest hit due to the high degree of cross-border trade in these industries.

“U.S. tariffs of 25% combined with proportionate retaliatory tariffs would reduce Canada’s exports and cause its GDP to fall 2.5% from peak to trough by early 2026. Inflation would rise to 7.2% by mid-2025, and layoffs would… 150,000 workers to raise unemployment “The rate will reach 7.9% by the end of the year,” Davenport said.

During his first term, Trump imposed tariffs on Canadian steel and aluminum exports. Canada responded by imposing tariffs on American products such as whiskey and yogurt coming from a factory in Wisconsin.

He contributed to this report.

Ahmed Mukhtar

Ahmed Mokhtar is a producer for CBS News based in Toronto, Canada. He covers politics, conflict and terrorism, focusing on news from Canada and his native Afghanistan, which he left after the Taliban returned to power in 2021.