TORONTO — Canada’s most populous province may bar American-made alcohol in addition to restricting electricity exports to Michigan, New York and Minnesota if President-elect Donald Trump imposes sweeping tariffs on all Canadian products, according to a senior official said Thursday.
The official in Ontario Premier Doug Ford’s government said that it’s contemplating restricting Ontario’s liquor control board from buying American-made alcohol.
Ontario is also considering restricting exports of critical minerals required for electric vehicle batteries and preventing U.S.-based companies from the government’s procurement process, the official said, speaking on condition of anonymity because the person wasn’t authorized to speak publicly about the potential measures.
Ford has confirmed Ontario is contemplating restricting electricity exports to the three states and said that would make electricity unaffordable for Americans.
“It’s a last resort,” Ford said Thursday. “I don’t think President-elect Trump wants that to happen. We’re sending a message to the U.S. If you come and attack Ontario, you attack the livelihoods of people in Ontario and Canadians, we are going to use every tool in our tool box to defend Ontarians and Canadians. Let’s hope it never comes to that.”
Trump has threatened to impose a 25% tax on all products entering the United States from Canada and Mexico unless they stem the flow of migrants and drugs.
Ontario powered 1.5 million homes in the U.S. in 2023.
“That’s OK if he does that. That’s fine,” Trump told CNBC when asked about Ford’s remarks.
The premier of the oil-rich Canadian province of Alberta ruled out cutting off oil exports. “We’re making the case for Alberta oil and gas to be part of the solution to energy affordability and energy security,” Alberta Premier Danielle Smith said.
About 60% of U.S. crude oil imports are from Canada and a fifth of the crude refined in the U.S. comes from Canada.
“If you put a 25% tariff on oil from Alberta that increases every gallon of gasoline by one dollar,” Ford said.
About 85% of U.S. electricity imports come from Canada as well. Canada also has 34 critical minerals and metals the Pentagon is eager for.
Nearly $2.7 billion worth of goods and services cross the border each day. Canada is the top export destination for 36 U.S. states.
Canada has promised more border security spending to address Trump’s border concerns. Ford said that will include more border and police officers, as well as drones and sniffer dogs.
Newfoundland Premier Andrew Furey said he had a call with New England governors this week and said there is a significant concern on both sides of the border.
“We hope it is just bluster,” Furey said. “We are preparing as if it is not. There will be no winner in a trade war.”
Gillies writes for the Associated Press.