Canada's Ontario retaliates to Trump's tariffs, bans US firms & threatens to cut electricity to US

Canada’s provinces have joined the federal government in retaliation to US President Donald Trump’s tariffs. Ontarioa has taken the lead.

Ontario’s Governor Doug Ford on Tuesday announced a slew of measures that will lead to US companies losing tens of billions in business and business opportunities of hundreds of billion. He also threatened to cut Canadian electricity supply to US states that could plunge millions across states into darkness. He also cancelled a government contract with Elon Musk’s Starlink.

Ford’s measures are on top of 25 per cent tariffs that Prime Minister Justin Trudeau imposed in two phases on US goods worth C$150 billions that Canadian.

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Canada has come to have a bipartisan consensus against Trump’s trade war and territorial aggression. Trump has repeatedly threatened to annex Canada and make the country the 51st US state. After a one-month reprieve expired, Trump’s 25 per cent tariffs on Canada and Mexico came into effect on Tuesday. On March 12, 25 per cent tariffs on steel and aluminium are set to come into effect and will hit Canada hardest as the country is the largest exporter of these metals to the United States.

Ontario cancels Starlink contract, bans US firms & products

In immediate retaliation to Trump’s tariffs, Ontario’s Premier Ford announced the cancellation of C$100 million contract to Musk’s Starlink.

Ford also announced that US companies will be banned from government procurements contracts to the tune of C$30 billion a year and C$200 billion-worth infrastructure projects in the province. He also announced the ban on the sale of US alcoholic beverages in the state.

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Overall, the US companies are set to lose tens of billions in business and hundreds of billions of business opportunities.

ALSO READ: Trump tariffs against Mexico, Canada & China take effect, trigger a global trade war

Announding these measures, Ford said that instead of growing stronger together, Trump is sowing chaos.

“This is not the outcome anyone wanted. We could have poured our efforts into making Canada and the U.S. the two richest, most successful, safest, most secure two countries on the planet. Unfortunately, one man —President Trump— has chosen chaos instead,” said Ford.

Other states are also joining the retaliation. Just like Ontario, Nova Scotia’s alcohol distributor also said it would stop selling US products.

Ford threatens to cut electricity supply to US

In what could be the most far-reaching threat, Ford announced he would cut electricity supply from his state to US states if tariffs persist.

Ontario provices electricity to around 1.5 million homes in US states of Michigan, Minnesota, and New York.

Ford said that he would first impose 25 per cent tariff on electricity supplied to US states and then cut the supply completely if tariffs still persist.

The electricity surcharge could be damning to US costomers. The 25 per cent surchage will be on top of the 25 per cent tariff that Trump has already imposed. This would meant that customers would pay 50 per cent more for electricity supplied by Ontarioa.

ALSO READ: Even as Trump wages tariff wars, 75% Americans don't know what it means

After Ford announced these measures, US Commerse Secretary Howard Lutnick called and had a conversation that has been described in the media as “tough”.

While Lutnick asked Ford to stand down and told him that comments by Canadian leaders, such as by Trudeau that tariffs were "dumb" were being seen as a personal remark on the president in the United States, Ford said that he would stand down and would instead ramp up measures if needed, according to Globe and Mail.