Canada's Ontario retaliates against Trump's trade war with 25% hike on electricity exports to US

Ontario Premier Doug Ford has followed through with his promise and slapped a 25 percent surcharge on electricity the province provides to 1.5 million American homes.

The surcharge imposed on Monday is a retaliatory measure for US President Donald Trump’s tariffs and will affect New York State, Minnesota and Michigan.

The money generated is estimated to be at $208,000 to $277,000 per day.

Ford, the leader of Canada’s most populous province, said the funds will support workers and businesses hurt by the US tariffs.

The tariffs have exploded into a trade war where Canada and US will both be losers, Ford said at a press conference in Toronto.

"It’s going right downhill for both countries," Ford said. "All because of one man (Trump). The American people did not vote for this. Until the threat of tariffs is gone for good, Ontario will not back down."

The situation seems to change daily, but Trump has said that as of March 12, Canadian steel and aluminum exported to the US will be hit with a 25 percent tariff.

On April 2, the United States will impose reciprocal tariffs on nations that slap tariffs on goods imported from the US. Goods covered in the free trade agreement with Canada, Mexico and the US may be tariff free, but nothing is definitive – it is an economic rollercoaster.

200-year friendship will resume

Ford pointed the finger of blame at one person who has stated that his goal is to bring the Canadian economy to its knees and force Canada to join the US as the 51st state.

"He (Trump) is trying to force us into a recession," Ford said, vowing to take whatever measures are necessary to protect the people of Ontario, including to "shut the electricity off completely."

Stephen Lecce, the provincial minister of energy and electrification, said at the press conference that the chaos between the two countries will end and a 200-year friendship will resume "once we get through this madness with President Trump."

The new surcharge is in addition to the federal government's initial $21 billion worth of retaliatory tariffs that have been applied on items like American orange juice, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles and certain pulp and paper products.

Trump launched a new trade war last week by imposing tariffs against Washington’s three biggest trading partners, drawing immediate retaliation from Mexico, Canada and China and sending financial markets into a tailspin.

Trump later said he has postponed 25 percent tariffs on many goods from Canada and Mexico for a month, amid widespread fears of a broader trade war.

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Source: TRT