The Canadian Premier imposed a significant hike in electricity taxes on neighboring U.S. states, prompting Donald Trump to declare that the United States will respond.
As soon as President Donald Trump took office for his second term in January, he quickly approved “catastrophic” tariffs for its trading partners in the US and Canada, escalating the ongoing trade war between the two countries.
In support of his tax rises, Trump pointed to trade and immigration deficits and blamed China, Canada, and Mexico of failing to stop a “flow of illicit drugs” that were entering the US.
He pledged in February to impose 25% increases on goods originating from Canada and Mexico; but, following threats of retaliation, he postponed the plan for a month until March 4, with additional tariffs reportedly going into effect on April 2.
By referring to Canadian Prime Minister Justin Trudeau as the “Governor of Canada,” the Trump has subsequently stated that the only way for Canada to avoid the tariff increases would be to become the US’ “cherished 51st state,” further escalating tensions.
Although Ontario Premier Doug Ford threatened to raise prices or even cut off power to 1.5 million US people living in Minnesota, New York, and Michigan, Trudeau retaliated by saying that counter-tariffs will be applied to US imports.
Now since he seems to be standing firm with his finger on the switch, Ford has threatened to “shut the electricity off completely” if the US keeps “escalating.”
Ford told reporters on Monday: “I will not think twice about turning off the electricity entirely if the United States escalates.” You should believe me when I say that I do not want to do this; I feel awful for the American people because they did not initiate this trade war.
“Just one individual bears responsibility. Trump is that president.
The increase in electricity would result in an approximate $100 increase in energy costs for residents of the three US states.
In a Fox Business interview, the Premier reaffirmed that the proposal would proceed, saying: “Isn’t this a shame? Everything is a complete mess—he’s caused mayhem.”
Ford added, “The only thing that’s certain today is more uncertainty,” on Twitter. There is no point in pausing certain tariffs. We’ll keep up the pressure until President Trump permanently eliminates the threat of tariffs.”
Ford’s idea was ridiculed by Trump in retaliation, claiming that the retaliation will simply hurt Ontario more.
He stated on his Facebook page, Truth Social: “Despite the fact that Canada is charging the USA from 250 percent to 390 percent Tariffs on many of our farm products, Ontario just announced a 25 percent surcharge on ‘electricity,’ of all things, and you’re not even allowed to do that.”
He doubled down by promising the US will ‘just get it all back on April 2’ when the reciprocal tariff plan takes effect.
He added: “Canada is a Tariff abuser, and always has been, but the United States is not going to be subsidizing Canada any longer. We don’t need your Cars, we don’t need your Lumber, we don’t your Energy, and very soon, you will find that out.”
Canada’s newly elected prime minister Mark Carney has also vowed to fight the trade war, saying that the taxes present the ‘greatest crisis in our lifetime’ for Canadians.
The new tariffs would be the most transformative trade change since 1890, when the US imposed 50 percent hikes on all manufacturing goods under the then-president William McKinley, who Trump calls the ‘tariff king’.
