Summary
Ontario will impose a 25% surcharge on electricity exports to New York, Michigan, and Minnesota starting Monday in retaliation for Trump’s tariffs on Canadian goods.
Premier Doug Ford warned U.S. governors and vowed to maintain the surcharge until all tariffs are lifted.
Canada has already imposed $30 billion in retaliatory tariffs, with more planned.
Ford also threatened to cut power to the states by April and banned U.S. firms from bidding on Ontario contracts. A $100M SpaceX deal for rural internet was also scrapped in response.
Canada - America trade amounts to a little over $920B https://crsreports.congress.gov/product/pdf/IF/IF12595
Canadian GDP is a little over $2.1T https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=CA
We’re talking nearly half of their GDP. In addition, half of Canadian foreign investment comes directly from the US. They will continue to be integrated into the US economy, even if Trump doubled the tariffs tomorrow.
And that’s because Canada, and Mexico to an even higher extent, are completely reliant on US trade. They both have no real choice but to grin and bear it. They will of course speak out publicly for the domestic audience but things will continue more or less status quo for the foreseeable future.
canada and Mexico are not “grinning and bearing it” though