Ontario Premier Doug Ford speaks to members of the media as mayors from selected municipalities and government ministers look on the Queen's Park Legislature in Toronto on Thursday Dec. 12, 2024. (Chris Young/The Canadian Press via AP)
TORONTO (AP) — Canada’s most populous province may bar American-made alcohol in addition to restricting electricity exports to Michigan, New York and Minnesota if U.S. President-elect Donald Trump imposes sweeping tariffs on all Canadian products, a senior official said Thursday.
The official in Ontario Premier Doug Ford’s government said that it’s contemplating restricting Ontario’s liquor control board from buying American-made alcohol.
Ontario is also considering restricting exports of critical minerals required for electric vehicle batteries and preventing U.S.-based companies from the government’s procurement process, the official said on condition on anonymity because the functionary wasn’t authorized to speak publicly about the potential measures.
Ford confirmed on Wednesday evening that Ontario is contemplating restricting electricity exports to Michigan, New York State and Minnesota. He reiterated that on Thursday and said it would make electricity unaffordable for Americans.
“It’s a last resort,” Ford said. “I don’t think President-elect Trump wants that to happen. We’re sending a message to the U.S. If you come and attack Ontario, you attack livelihoods of people in Ontario and Canadians, we are going to use every tool in our tool box to defend Ontarians and Canadians. Let’s hope it never comes to that.”
Trump has threatened to impose a 25% tax on all products entering the United States from Canada and Mexico unless they stem the flow of migrants and drugs.
Ontario powered 1.5 million homes in the U.S. in 2023 and is a major exporter of electricity to Michigan, Minnesota and New York.
“That’s OK if he that does that. That’s fine,” Trump told CNBC when asked about Ford’s remarks on the floor of the New York Stock Exchange.
“The United States is subsidizing Canada and we shouldn’t have to do that,” Trump said. “And we have a great relationship. I have so many friends in Canada, but we shouldn’t have to subsidize a country. We’re subsidizing more than a $100 billion a year. We shouldn’t have to be doing that.”
The CNBC reporter said off camera that Trump told him that they hope they can work something out with Canada.
The premier of the oil rich Canadian province of Alberta ruled out cutting off oil exports.
“Under no circumstances will Alberta agree to cut off oil and gas exports,” Alberta Premier Danielle Smith said. “Instead, we’re taking a diplomatic approach and we’re meeting with our allies in the U.S. We’re making the case for Alberta oil and gas to be part of the solution to energy affordability and energy security.”
Canada supplies more oil to the U.S. than any other country, nearly 4.5 million barrels a day. About 60% of U.S. crude oil imports are from Canada and a fifth of the crude refined in the U.S. comes from Canada.
“If you put a 25% tariff on oil from Alberta that increases every gallon of gasoline by one dollar,” Ford said.
About 85% of U.S. electricity imports come from Canada as well. Canada also has 34 critical minerals and metals the Pentagon is eager for.
Nearly 3.6 billion Canadian dollars ($2.7 billion) worth of goods and services cross the border each day. Canada is the top export destination for 36 U.S. states.
Canada has promised more border security spending to address Trump’s border concerns. Ford said that will include more border and police officers, as well as drones and sniffer dogs.
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