US-Canada Trade War

Ontario Premier Doug Ford has threatened to sever electricity and critical mineral supplies to the United States as a trade dispute between the two neighbors deepens. Ford warned that if the conflict worsens, Ontario would cut off power and minerals vital to U.S. military aircraft, missiles, and electronics. The province currently supplies electricity to 1.5 million American homes and businesses across Michigan, Minnesota, and New York.

The escalation follows Washington's imposition of 50% tariffs on roughly $20 billion worth of Canadian goods. Canada announced matching counter-tariffs effective Sept. 8. President Donald Trump has further threatened to raise duties on Canadian automobiles, car parts, and steel to 50% starting in January.

Ford said Trump has underestimated Canadians' willingness to endure economic hardship rather than yield to pressure, adding that Ronald Reagan would be "throwing up" over current U.S. trade policy. Ontario had already levied a 25% surcharge on cross-border power exports in an earlier phase of the dispute.

U.S. President Donald Trump announced a 50% tariff on all Canadian automobiles, trucks, auto parts, and steel starting January 1, 2027, escalating a trade dispute after bilateral negotiations collapsed over the weekend. The new duties target roughly $20 billion in Canadian goods, representing about 5% of Canada's exports to the United States.

Trump cited a $60 billion trade deficit with Canada, claiming the country had taken advantage of the U.S. for years. Canada's ambassador Mark Wiseman said the written trade text diverged from what Ottawa believed had been agreed, causing talks to break down.

Canadian Prime Minister Mark Carney announced retaliatory tariffs effective September 8, targeting U.S. steel, dairy, appliances, agricultural equipment, pulp, paper, and electronics. Shares of Ford and Stellantis each fell 4% on the announcement, with General Motors also declining. The United States accounts for roughly 70% of Canadian exports.

Canadian Prime Minister Mark Carney suspended trade negotiations with the United States after describing last-minute changes to the deal's terms as "unfair", directing Canadian negotiators to return to Ottawa. The decision came after US Trade Representative Jamieson Greer said Canada declined to finalize the agreement under previously agreed terms.

The 50% tariffs on approximately $20 billion in Canadian goods took effect at 12:01 a.m. EDT Saturday, affecting products previously protected under the USMCA. Carney pledged that Canada would retaliate "dollar for dollar" to protect Canadian workers and businesses.

Earlier, Dominic LeBlanc had spent roughly eight hours in meetings with Greer, stating negotiators "have more work to do". US Vice President JD Vance told attendees at a private fundraiser that Carney had tried to "out-tough Donald Trump" in trade talks. A Leger poll found 56% of Canadians wanted no further concessions to Washington.