Key facts
- Ontario Premier Doug Ford threatened to cut off electricity and critical minerals to the U.S. if trade disputes escalate.
- Ford criticized President Donald Trump's trade policies, suggesting they would have been opposed by Ronald Reagan.
- The U.S. imposed 50% tariffs on Canadian goods, with Canada planning retaliatory measures.
- Trump threatened a 50% tariff on Canadian automobiles, auto parts, and steel.
- Ford cited Ontario's high-grade nickel, uranium, and electricity as potential leverage.
- Ford stated he opposed a preliminary trade agreement that Prime Minister Mark Carney was considering.
Ontario Premier Doug Ford has warned that Canada must be prepared to cut off electricity and critical minerals to the United States if the escalating trade dispute worsens. In an interview with The Associated Press, Ford stated that President Donald Trump's protectionist policies would have been opposed by former President Ronald Reagan, and that Canadians are willing to endure economic pain rather than yield to U.S. pressure.
Ford's comments follow Prime Minister Mark Carney's withdrawal from trade negotiations with the Trump administration, which led to the U.S. imposing 50% tariffs on approximately $20 billion worth of Canadian goods. Canada plans to retaliate with its own dollar-for-dollar tariffs starting September 8.
Trump further escalated the dispute by threatening a 50% tariff on Canadian automobiles, auto parts, and steel. Ford indicated that Ontario's high-grade nickel, uranium, and electricity exports to the U.S. are on the table as potential leverage. He suggested that Ontario could raise electricity prices or cease power exports, which currently supply 1.5 million homes and businesses.
Ford accused Trump of aiming to dismantle Canadian industries and relocate production to the U.S., particularly targeting the integrated auto sector. He also revealed that he had opposed a preliminary trade agreement that Carney had been considering before negotiations broke down, citing disagreements over restoring American liquor sales in Ontario.