Ontario Considers Trade Retaliation Against U.S.
Ontario Considers Trade Retaliation Against U.S.

Ontario Considers Trade Retaliation Against U.S.

News summary

Ontario is considering retaliatory measures against potential U.S. tariffs proposed by President-elect Donald Trump, including banning American-made alcohol purchases by the province's liquor control board and restricting electricity exports to Michigan, New York, and Minnesota. Premier Doug Ford has emphasized that cutting off electricity, which powered 1.5 million homes in the U.S. in 2023, is a last resort but necessary to defend Ontario's interests. Other proposed actions include limiting critical mineral exports essential for electric vehicle batteries and barring U.S.-based companies from provincial procurement processes. Ford's comments come as Trump threatens a 25% tariff on all Canadian products unless immigration issues are resolved. Trump responded to the potential actions, stating that if Ontario restricts electricity exports, it is acceptable because the U.S. should not subsidize Canada. The situation highlights the delicate trade relationship between the two nations, with Canadian leaders advocating for cooperation over conflict.

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