Ontario Retaliation | In response to US President Donald Trump’s tariffs, Canada’s Ontario province has banned US firms from government contracts, canceled a major contract with Elon Musk’s Starlink, and threatened to cut electricity supply to millions of Americans. These drastic countermeasures mark one of the most aggressive retaliatory moves by Canada in response to the ongoing trade war initiated by the United States.
Ontario’s Strong Response to Trump’s Trade War
Ontario Retaliation | Canada’s provinces have aligned with the federal government in taking a firm stance against Trump’s trade policies. Ontario has led the charge with bold economic countermeasures. Ontario Governor Doug Ford announced sweeping actions that could cost US businesses tens of billions in revenue and hundreds of billions in lost opportunities.
Ford also warned that if the US tariffs persist, Canada may halt electricity exports to American states, a move that could leave millions in darkness. Additionally, a C$100 million contract with Elon Musk’s Starlink was abruptly canceled, further deepening the economic standoff.
These measures come on top of the 25% tariffs that Canadian Prime Minister Justin Trudeau imposed on US goods worth C$150 billion in two phases.
The Broader US-Canada Trade Conflict
Canada has shown a united political front against Trump’s aggressive trade policies. The US president has not only imposed tariffs on Canadian exports but has also made territorial threats, suggesting that Canada should become the 51st US state. This rhetoric has fueled Canada’s retaliatory stance.
After a temporary reprieve expired, Trump’s 25% tariffs on Canada and Mexico went into effect. By March 12, additional 25% tariffs on steel and aluminum are expected, a move that will hit Canada particularly hard, as it is the largest exporter of these metals to the United States.
Ontario’s Economic Countermeasures
1. Cancellation of Starlink Contract & Ban on US Companies
Ontario Retaliation | In immediate retaliation, Ontario Premier Doug Ford canceled a C$100 million government contract with Musk’s Starlink, striking a direct blow to the billionaire’s space-based internet project.
Ford also declared that US firms are banned from government procurement contracts, which amount to C$30 billion annually and will also be excluded from C$200 billion worth of infrastructure projects in Ontario.
In addition to these moves, Ontario has banned the sale of US alcoholic beverages, further impacting American exports to the province.
These restrictions mean that US businesses stand to lose tens of billions in direct contracts and hundreds of billions in long-term trade opportunities. Expressing frustration at Trump’s policies, Ford stated:
“This is not the outcome anyone wanted. We could have poured our efforts into making Canada and the U.S. the two richest, most successful, safest, most secure two countries on the planet. Unfortunately, one man—President Trump—has chosen chaos instead.”
Ontario is not alone in this fight. Other provinces are also taking action. Nova Scotia’s alcohol distributors have already announced a boycott of US-made alcoholic products.
2. Ontario’s Threat to Cut US Electricity Supply
Ontario Retaliation | Among the most severe retaliatory threats is Ford’s announcement that Ontario may halt electricity exports to the United States. Currently, Ontario supplies electricity to 1.5 million homes across Michigan, Minnesota, and New York.
Ford has outlined a two-phase escalation:
- First, Ontario will impose a 25% tariff on electricity supplied to the US.
- If the US tariffs persist, Ontario will completely cut off electricity exports to these American states.
This move could have devastating economic consequences, as US consumers already face rising energy costs. If the surcharge is enacted, it would mean an additional 25% cost increase, effectively doubling the price of Ontario-supplied electricity when combined with Trump’s tariffs.
Also Read : Strategic Takeover: US-Backed Deal Reshapes Control Over Panama Canal. Shocking
Escalating US-Canada Tensions | Ontario Retaliation
Ontario Retaliation | Following Ford’s retaliatory measures, US Commerce Secretary Howard Lutnick engaged in a tense conversation with the Ontario leader. According to Canadian media, Lutnick attempted to convince Ford to stand down, arguing that Canadian leaders, including Prime Minister Trudeau, had been making personal attacks on Trump by calling the tariffs “dumb.”
However, Ford remained firm, stating that he was prepared to escalate measures further if necessary.
