Canada is done playing nice. After enduring Donald Trump‘s incessant 25% tariff threats, they’re clapping back with a power move of their own. Ontario Premier Doug Ford didn’t mince words in responding to Trump’s tariff tantrum.
Speaking at a mining convention in Toronto, Ford bluntly warned that if Trump proceeds with these punitive tariffs, Ontario is fully prepared to halt electricity exports to the U.S. — and he’ll do it “with a smile.” “They rely on our energy. They need to feel the pain. They want to come at us hard, we’re going to come back twice as hard,” he said.
The numbers don’t lie
🚨 BREAKING: Doug Ford just went nuclear on Trump’s tariffs—threatening to slap a 25% surcharge on electricity exports to New York, Michigan, and Minnesota.
— Brian Allen (@allenanalysis) March 4, 2025
And if things escalate? Ontario is ready to cut the power off completely.
Ford isn’t playing around. Canada has already… pic.twitter.com/8r4siHUSl2
In 2024, the U.S. imported about 27,220,531 megawatt hours (MWh) of electricity from its northern neighbor, according to the U.S. Energy Information Administration (EIA). While this trade only accounts for less than 1% of total electricity generation in both countries, its importance can’t be overstated. Grid balancing is a constant challenge, and that’s where Canada’s electricity exports come in. When energy demand spikes in the U.S., or when production dips (looking at you, Texas during winter storms), Canada’s surplus electricity helps keep things stable. And the U.S. does the same for Canada during periods of low hydropower production, particularly on the western coast.
If Canada pulled the plug, even temporarily, it could destabilize entire regional grids. And as anyone who’s ever lived through a blackout can tell you, losing power is the fastest way to realize how fragile modern life really is.
A self-inflicted wound
Trump’s 25% tariffs on Canadian goods were supposed to give the U.S. a competitive edge, but here’s the thing about tariffs: they’re not paid by foreign governments. They’re paid by consumers. If Canada retaliates with electricity cuts, U.S. energy prices will undoubtedly rise. But even without that, tariffs are already making life more expensive. In 2024, the U.S. imported $6.87 billion worth of cereal, flour, starch, and milk products from Canada. Meat imports were valued at $4.01 billion, and vegetable oils added another $5.12 billion. With tariffs in place, the cost of groceries has nowhere to go but up.
It’s not just food. Canada supplies about one-third of the softwood lumber used in U.S. construction. Tariffs on lumber mean higher home prices. Furthermore, thanks to deeply integrated supply chains, parts for cars often cross the U.S.-Canada border multiple times before final assembly. A 25% tariff could increase the price of a car by $3,000, according to BBC. And, oh yes, energy. Canada is the largest foreign supplier of crude oil to the United States. Even though energy tariffs might be lower (around 10%), any retaliatory measures by Canada could send gasoline prices soaring.
Capitalism thrives best on open markets — something America has traditionally championed. Historically, tariffs haven’t exactly been America’s proudest economic moments. The notorious Smoot-Hawley Tariff Act of 1930 dramatically raised tariffs on imports, triggering retaliatory tariffs worldwide. The result? A collapse in global trade, a prolonged Great Depression, and severe economic pain for American families. Republicans spent decades afterward promoting free trade precisely because history proved tariffs often backfire. But Trump, apparently uninterested in history, seems determined to repeat past mistakes and isolate America from every ally it has.
Published: Mar 5, 2025 04:42 am