Ontario will slap a 25 per cent export tax on the electricity it supplies to three U.S. states if sweeping tariffs on Canadian goods “persist,” Premier Doug Ford says.
Ford made the comment during a news conference on Tuesday afternoon, noting that the export tax would apply to electricity that Ontario sends to 1.5 million homes and businesses in New York, Michigan and Minnesota. It is not immediately clear when the tax would be put into effect.
“Today I am writing to every senator, every congressman and congresswoman and the governors from New York, Michigan and Minnesota telling them that if these tariffs persist and if the Trump administration follows through on any more tariffs we will immediately implement a 25 per cent surcharge on the electricity we export,” Ford said. “We will not hesitate to shut off their power as well.”
When asked about whether this will require legislation, Ford said he is still looking into how quickly a 25 per cent export tax can be imposed on electricity.
“The federal government is in charge of any export so we will working with the federal government,” Ford said, adding that he will be speaking to the prime minister this afternoon to discuss what the province can do to speed up retaliatory measures.
He added that if tariffs persist into April, the province will consider cutting off electricity to the U.S.
Ford’s previously told CNN that U.S. President Donald Trump’s tariffs will have devastating impacts on the U.S. auto manufacturing sector, suggesting that assembly lines could “shut down” in the United States within a matter of days.
Ford made the comments during an interview with CNN on Tuesday morning.
“We are going to continue seeing, in the U.S., plants close, assembly lines shut down,” the premier said.
“It will only last eight to maybe 10 days at the max and then you are going to see auto plants being shut down.”
Ford’s comments came just hours after Trump hit Canada and Mexico with 25 per cent across-the-board tariffs. The federal government announced Monday that it will immediately put into place retaliatory tariffs on $30 billion of U.S. goods and then more tariffs on another $125 billion in U.S. goods three weeks later.
Speaking later in the day, Ford acknowledged that there will be plant closures on both sides of the border.
“This is unnecessary and we do have to retaliate and I apologize to the American people. It is not you. It is your president that is causing this problem,” Ford told CNN.
“He’s going to create job losses, inflation is going up, the market is dropping. Gas prices are going up, groceries are going up.”
Ford also announced Tuesday that Ontario will be pulling U.S. alcohol products from LCBO shelves in retaliation.
“We buy from 35 states 3.600 products,” he said. “They are coming off (the shelf).”
Ford said the U.S. president continues “moving the goalposts” in terms of his demands, noting that he has frequently changed his story about what is motivating the tariffs.
“They (Canadians) are absolutely livid. They are furious because we look at the United States as our family,” he said.
Ford reiterated that he will “use every tool in the toolbox” to protect Ontarians and Canadians.
“I have never seen patriotism run so wild across our country, right down to the grocery aisles,” he said.
“People refuse to buy American products. This is not right. We love America, we love the people, and the president needs to be stopped. Simple as that.”
Ford said Monday that the province would consider halting the supply of nickel and electricity to the United States in response to the tariffs.
Ford is expected to address reporters at a news conference in Toronto at 11:30 a.m.
‘Toronto stands united’
In a statement released Tuesday, the mayor of Canada’s largest city said Toronto residents “stand united in a Team Canada approach” in responding to Trump’s “senseless” trade action.
“As the U.S. imposes tariffs, hardworking Torontonians are worried. People are concerned about their jobs and cost of food,” she wrote.
“Toronto stands united in a Team Canada approach to respond to this senseless trade action. We will get through this together.”
“We will respond strongly and we don’t want to,” Ford said. “On the critical minerals I will stop shipments going into the U.S. for nickel. I will shut down manufacturing because 50 per cent of the nickel you use is coming from Ontario.”