Cut off the Canadian electricity that supplies New York, Michigan and Minnesota? This is, according to several Canadian media, the proposal made by the Premier of Ontario, Doug Ford. The head of Canada’s second largest province (after Quebec) threatened to break energy agreements with the United States if Donald Trump were to increase customs tariffs on Canadian products. “We will use all the tools at our disposal, including cutting off the energy we send them, if necessary,” reports the Canadian media CBCquoting Doug Ford.
The announcement was made after a meeting between Prime Minister Justin Trudeau and his counterparts from the Canadian provinces, aimed at discussing possible economic retaliation in response to the measures that the future American administration wishes to put in place. The Minister of Finance, Chrystia Freeland, would consider applying taxes to a list of products that Canada exports to the United States. Donald Trump, who accuses Canada of not sufficiently securing its border, announced that he would increase taxes on Canadian imports to 25% if nothing was done.
60% of American oil comes from Canada
According to the Montreal JournalChrystia Freeland also mentioned that “some provincial premiers have expressed willingness to withhold their critical metals and minerals that Americans need, such as nickel, cobalt and copper.” François Legault, Prime Minister of Quebec, for his part called for an immediate renegotiation of the free trade agreement with the United States, and a tightening in the allocation of visas.
These trade tensions would have significant consequences for the Canadian economy, but also for certain American consumers. Energy represents about a third of Canada’s trade with the United States, and the province of Ontario alone supplies 1.5 million American homes with electricity. 2.7 billion US dollars worth of goods cross the border every day, while 60% of the oil imported into the United States comes from Canada, recalls CBC. “If you imposed customs duties of 25% on 60% of your imports, the price of your gasoline would increase astronomically,” responded Vic Fedeli, Canadian Minister of Economic Development for Ontario, upon his return from a travels to the United States, where he claims to have met American officials.
Border security
According to the Montreal daily, Prime Minister Justin Trudeau presented a provisional plan to strengthen security at the Canadian border, including “better coordination between the different police forces, investments in surveillance equipment and some legislative changes to tighten the screws on temporary immigrants. He also announced stricter supervision of fentanyl, a very powerful opioid, diverted as a drug, and for which the Canadian border would be an important crossing point, assures Donald Trump.