Ontario Premiere threatens to cut off energy to the United States

 

Canada could retaliate against President-elect Donald Trump’s threatened tariffs by shutting down energy flows to the United States, a top Canadian official warned.

“We will go to the extent of cutting off their energy going down to Michigan, going down to New York State and over to Wisconsin,” Premier Doug Ford of Ontario, Canada’s largest province, threatened on Wednesday evening.

Ford warned that Canada must use “every tool in our toolbox” if Trump follows through on his threat to impose a 25% tariff on Canadian imports on his first day in office.

Given that Ontario is not a major producer of crude oil, Ford’s threat appeared to specifically apply to electricity the United States imports from Canada.

“Canadians get hurt, but I can assure you one thing: The Americans are going to feel the pain as well, and isn’t that unfortunate,” Ford said.

Trump’s proposed tariffs could plunge the Canadian economy into a painful recession. The threat from Ford shows how some in Canada are pushing for a forceful response that could temporarily disrupt power and fuel to some Americans.

Ford’s comments also raise the specter of broader retaliation from Canada that somehow disrupts the flow of oil imported into the United States, although analysts say such a move looks unlikely at this point.

A full-blown trade war between the United States and Canada could ultimately damage both economies, hurting consumers and businesses on either side of the border.

“This is a threat that shouldn’t be ignored. Canada doesn’t want to take this lying down,” said Patrick De Haan, head of petroleum analysis at GasBuddy.

Experts said that any retaliation from Canada, including from the provinces, would need to get approved by the federal government in Ottawa.

The United States regularly imports hydropower from Ontario, Quebec and British Columbia. Canada is the leading source of imported electricity into the United States, although it represents a relatively small piece of the pie of total consumption.

Last year, the United States imported 38.9 million megawatt hours of electricity, according to the US Energy Information Administration. The vast majority of that – 33.2 million megawatt hours – came from Canada.

However, that represents less than 1% of annual US electricity consumption, according to the EIA.

https://www.cnn.com/2024/12/13/business/canadian-us-energy/index.html