Following the Canadian Premier’s implementation of a significant rise in electricity taxes for adjacent U.S. states, Donald Trump declared that the United States will reciprocate.
Almost immediately after taking office for his second term in January, President Donald Trump approved “catastrophic” tariffs on its trading partners, escalating the ongoing trade war between the United States and Canada.
Trump justified the tax increases by pointing to trade and immigration deficits and accusing China, Canada, and Mexico of failing to stop a “flow of illicit drugs” that were entering the US.
He pledged to implement 25% increases on goods originating from Canada and Mexico in February, but amid threats of retaliation, he put the plan on hold for a month until March 4, with more tariffs reportedly going into effect on April 2.
Since then, the Trump has exacerbated tensions by labeling Canadian Prime Minister Justin Trudeau the “Governor of Canada” and implied that the only way for Canada to avoid the tariff increases would be to become the US’ “cherished 51st state.”
While Ontario Premier Doug Ford threatened to raise prices or even cut off power to 1.5 million US people living in Minnesota, New York, and Michigan, Trudeau retaliated by saying that counter-tariffs will be levied to US imports.
With his finger poised on the switch, Ford now seems to be staying firm and threatening to “shut the electricity off completely” if the US keeps “escalating.”
“I will not hesitate to shut the electricity off completely if the United States escalates,” Ford told reporters on Monday. I feel awful for the American people since they did not initiate this trade war, so believe me when I say that I do not want to do this.
“There is only one person accountable. President Trump is that person.
Energy prices for residents of the three US states would increase by almost $100 as a result of the electricity boost.
In an interview with Fox Business, the Premier reaffirmed that the proposal would proceed, saying: “Isn’t this a shame? He’s caused turmoil, and it’s a complete mess.”
“The only thing that’s certain today is more uncertainty,” Ford added on Twitter. For some tariffs, a halt is meaningless. We will not back down until President Trump permanently eliminates the threat of tariffs.
Trump retaliated by disparaging Ford’s proposal and claiming that the retribution would only cause more harm to Ontario.
He stated on his website, Truth Social: “Despite the fact that Canada is charging the USA from 250 percent to 390 percent Tariffs on many of our farm products, Ontario just announced a 25 percent surcharge on ‘electricity,’ of all things, and you’re not even allowed to do that.”
The US will ‘simply get it all back on April 2’ when the reciprocal tariff arrangement goes into place, he reiterated.
“Canada is and has always been a tariff abuser, but the United States will no longer be subsidizing Canada,” he continued. We do not require your vehicles, lumber, or energy, and you will soon discover this.”
“The taxes represent the ‘greatest crisis in our lifetime’ for Canadians,” said Mark Carney, the country’s newly elected prime minister, who has pledged to fight the trade war.
Since 1890, when the US slapped 50% rises on all manufacturing goods under then-President William McKinley—whom Trump refers to as the “tariff king”—the new tariffs would be the most significant trade reform.