Canada’s provinces have joined the federal government in responding to US President Donald Trump’s tariffs. Among them, Ontario has taken the strongest stand.
Ontario Announces Major Retaliation
On Tuesday, Ontario’s Governor Doug Ford unveiled strict countermeasures. As a result, U.S. companies will lose tens of billions in business and hundreds of billions in potential opportunities. Furthermore, he warned that Ontario could cut electricity supply to several U.S. states, which may leave millions without power. In addition, he canceled a government contract with Elon Musk’s Starlink.
Ontario Cancels Starlink Deal and Bans U.S. Companies
In immediate retaliation, Ford canceled a C$100 million contract with Starlink. Moreover, he banned U.S. firms from bidding on C$30 billion worth of government contracts and C$200 billion in infrastructure projects. Additionally, he announced a ban on U.S. alcoholic beverages in the province.
As a result, American businesses will suffer major financial losses.
Canada Stands United Against Trump’s Trade War
Meanwhile, Canada’s political parties have come together against Trump’s aggressive trade policies. Notably, Trump has repeatedly threatened to annex Canada as the 51st U.S. state. On Tuesday, his 25% tariffs on Canada and Mexico took effect after a one-month delay. Furthermore, on March 12, additional 25% tariffs on steel and aluminum will begin, hitting Canada the hardest.
Ford strongly criticized Trump’s approach, saying it fuels instability.
“This is not the outcome anyone wanted. We could have worked together to make Canada and the U.S. the richest, safest, and most successful countries. Unfortunately, one man—President Trump—has chosen chaos instead,” Ford stated.
Meanwhile, other provinces are also stepping up their retaliation. For instance, Nova Scotia’s alcohol distributor announced it would stop selling U.S. products, just like Ontario.
Ontario Threatens to Cut Electricity Supply to U.S.
Even more significantly, Ford issued his strongest warning yet. He stated that Ontario could cut electricity supply to U.S. states if the tariffs continue.
Currently, Ontario provides power to about 1.5 million homes in Michigan, Minnesota, and New York. Initially, Ford will impose a 25% tariff on electricity exports. However, if tariffs persist, he will completely cut off supply.
As a result, U.S. customers will see a sharp rise in electricity costs. In fact, they will pay 50% more due to Trump’s tariff and Ontario’s new surcharge.
U.S. Commerce Secretary Urges Talks
Shortly after Ford’s announcement, U.S. Commerce Secretary Howard Lutnick called him for urgent discussions. According to reports, the conversation was “tough.”
During the call, Lutnick urged Ford to reconsider. He also claimed that remarks from Canadian leaders—especially Prime Minister Justin Trudeau calling the tariffs “dumb”—had personally offended Trump.
Nevertheless, Ford refused to back down. Instead, he warned that Ontario would escalate its measures if necessary.