Trade relations between the United States and Canada are facing increasing strain as a result of newly implemented tariffs. Ontario Premier Doug Ford has pledged to cancel the province's $100 million contract with Elon Musk's Starlink, citing the tariffs as the primary reason for the reversal. The tariffs, which impose a 25 percent duty on most Canadian goods and a 10 percent duty on energy exports, have sparked outrage and prompted retaliatory measures.
Ontario Threatens Retaliation
Premier Ford, once a staunch supporter of President Trump, is now prepared to take drastic action to protect Canada's interests. If the tariffs persist, Ontario will issue its own 25 percent surcharge on electricity exported to the US. Ford even stated that he would shut off electricity to US customers "with a smile" if the situation is not resolved.
"We also need to be ready to dig in for a long fight," Ford said. "We need to be ready to escalate using every tool in our tool kit." Canada provides electricity to residents in Michigan, New York, and Minnesota, and a shutdown could impact over 1.5 million people. Ford has also considered surcharges on mineral exports or ending them entirely.
Canada Responds with Retaliatory Tariffs
Ontario’s primary liquor wholesaler, the LCBO, has confirmed it will stop purchasing and selling US-made alcohol. Prime Minister Justin Trudeau has announced that Canada will issue matching retaliatory tariffs on US goods.
"Today the US launched a trade war against Canada, their closest ally and their closest friend. At the same time, they're talking about working positively with Russia, appeasing Vladimir Putin, a lying, murderous dictator. Make that make sense," Trudeau said during a news conference. He also suggested that Trump was trying to weaken the Canadian economy as an annexation strategy, but that "Canada will never be the 51st state."
Trump's Stance and Other Developments
Trump's stated reason behind the tariffs is fentanyl, despite evidence showing that less than one percent of the drug arrives in the US via Canadian routes. This information has been confirmed by both Trudeau and the US Drug Enforcement Administration.
Meanwhile, the Federal Aviation Administration (FAA) announced a partnership to install Starlink terminals at various airports. The agency also reportedly ordered staffers to "begin finding tens of millions of dollars for a Starlink deal.”
The situation remains fluid, and further updates are expected as tensions continue to escalate. The Ontario Ministry of Infrastructure has been contacted for details regarding the Starlink contract cancellation. We'll keep you updated.
"Canada will never be the 51st state." - Justin Trudeau