U.S. Commerce Secretary Contacts Premier Ford Over Ontario’s Proposed Electricity Export Tax
U.S. Commerce Secretary Pressures Premier Ford Over Ontario’s Electricity Export Tax
U.S. Commerce Secretary Howard Lutnick called Ontario Premier Doug Ford on Tuesday for a “tough and aggressive” discussion after the province announced plans to impose a 25% export tax on electricity supplied to three U.S. states, CTV News has learned.
Sources indicate Lutnick urged Ford to reconsider the retaliatory measure, but the premier remained firm, stating he would not back down as long as U.S. President Donald Trump’s broad tariffs remained in effect.
Ontario’s Retaliatory Measures
During a Tuesday press conference, Ford confirmed that the export tax would apply to electricity supplied to 1.5 million homes and businesses in New York, Michigan, and Minnesota. However, the timeline for implementation remains unclear.
Ford later released a letter addressed to U.S. senators, representatives, and governors of the affected states, informing them of Ontario’s stance should the Trump administration impose further tariffs.
“This surcharge would be in addition to actions already being taken by Canadian governments,” Ford stated.
Legislative and Federal Coordination
When asked about the necessity of legislative approval for the tax, Ford said he was exploring how quickly it could be enacted. He acknowledged that electricity exports fall under federal jurisdiction and confirmed upcoming discussions with the prime minister on expediting Ontario’s response.
Following a snap election, provincial parliament members will not be sworn in until at least the week of March 17. Ford also hinted at the possibility of cutting off electricity exports entirely if tariffs persist into April, suggesting Ontario’s manufacturing sector could instead utilize the excess power.
Strained Relations and Trade Restrictions
Ford expressed regret over the situation but urged American leaders to pressure Trump.
“I feel terrible because they are great governors. I know all three of them, and we’ve worked well together. I have to apologize to them and the American people. You need to make sure you send a message to President Trump,” Ford said.
In addition, Ford announced a ban on U.S. companies participating in Ontario government procurement and encouraged municipalities to adopt similar restrictions.
“I’ve instructed the Ontario Public Service and our ministers to scrutinize all contracts. Any American services or products must be stopped immediately. If they sue us, so be it. We are standing up for Ontario and Canada, and we are ready to fight in court,” Ford declared. “I want to inflict as much pain as possible.”
Ontario is also canceling a $100 million agreement with Elon Musk’s Starlink as part of the retaliatory measures.
Federal Government’s Response and Economic Impact
Hours before Ford’s statements, Trump imposed sweeping 25% tariffs on Canada and Mexico. In response, the Canadian federal government announced immediate retaliatory tariffs on $30 billion in U.S. goods, with additional tariffs on $125 billion to follow within three weeks.
“The coming days and weeks will be hard. Businesses and families will feel the pain of this needless fight,” Ford stated. “But we will emerge more united than ever before.”
Ford also confirmed that Ontario is considering halting nickel exports to the U.S. but awaits federal guidance on how to proceed.
Auto Industry at Risk
In an earlier CNN interview, Ford warned that Trump’s tariffs could devastate the U.S. auto sector, predicting that American assembly lines could shut down within days.
“We are going to see auto plants close and assembly lines shut down,” Ford said, estimating the impact could be felt in as little as eight to ten days.
Speaking later, Ford acknowledged that closures would likely occur on both sides of the border, attributing the economic fallout to Trump’s policies.
“This is unnecessary, and we have to retaliate. I apologize to the American people—it’s not you, it’s your president causing this problem,” Ford told CNN. “His actions will lead to job losses, rising inflation, market instability, and increasing costs for gas and groceries.”
Ontario to Remove U.S. Alcohol From Shelves
Ford announced that Ontario will remove U.S. alcohol products from LCBO shelves in retaliation.
“We purchase 3,600 products from 35 U.S. states—they’re coming off the shelves,” Ford confirmed.
He also criticized Trump for frequently shifting his rationale for the tariffs, stating, “Canadians are livid. We see the United States as family, and this betrayal is infuriating.”
Public and Political Response
Ford pledged to use “every tool in the toolbox” to protect Ontarians and Canadians, emphasizing the surge of national pride in response to the trade dispute.
“I have never seen patriotism run so wild across our country, right down to the grocery aisles,” he said. “People are refusing to buy American products. We love America, we love its people, but the president needs to be stopped. Simple as that.”
Ford has also urged retailers to clearly label Canadian and American-made products on store shelves, warning that he may legislate the requirement if businesses do not comply.
Toronto’s Stance
The mayor of Toronto issued a statement affirming that the city stands with a “Team Canada” approach to counter Trump’s trade policies.
“As the U.S. imposes tariffs, hardworking Torontonians are worried about their jobs and the rising cost of food,” the statement read. “Toronto stands united in responding to this senseless trade action.”
Ford emphasized that Ontario is prepared to escalate its response, including halting nickel exports vital to U.S. manufacturing.
“If necessary, I will stop nickel shipments to the U.S. and shut down manufacturing because 50% of the nickel they use comes from Ontario,” Ford warned.
Conclusion
With tensions escalating, Ontario and Canada are poised for a prolonged trade standoff with the U.S. Ford’s administration remains firm in its stance, signaling a potentially severe economic impact on both sides of the border.
