Ontario to restrict electricity exports to US and bar American-made alcohol if Trump tariffs applied

Ontario is preparing to take retaliatory measures against the U.S. if President-elect Donald Trump implements sweeping tariffs on Canadian products. These potential actions include barring American-made alcohol from Ontario’s liquor stores and restricting electricity exports to Michigan, New York, and Minnesota. Premier Doug Ford has also indicated that Ontario may limit exports of critical minerals used in electric vehicle batteries and exclude U.S.-based companies from provincial government contracts.

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The proposed measures come in response to Trump’s threat of a 25% tariff on all Canadian imports, which he claims is necessary to address issues like border security and drug trafficking. Ford emphasized that these retaliatory steps would be a “last resort” but warned they could make electricity unaffordable for Americans.

While Alberta Premier Danielle Smith ruled out cutting oil exports, she advocated for a diplomatic approach to support energy affordability and security. Canada, the largest supplier of oil and electricity to the U.S., also provides critical minerals vital to American industries.

Canadian officials, including Prime Minister Justin Trudeau, have expressed concerns about the economic and cross-border impact of such tariffs, urging strengthened border security and collaboration to avoid a trade conflict. Negotiations between the two nations remain ongoing.

Source: AP News