Major Escalation in U.S.-Canada Feud
Author: Greg Valliere
December 12, 2024
THE FEUD BETWEEN THE U.S. AND CANADA over trade escalated dramatically yesterday as the premier of Ontario said his province may cut off all shipments to the U.S. — including oil — if there’s no compromise on tariffs.
PREMIER DOUG FORD said Wednesday that he will cut off energy shipments to the U.S. if President-elect Donald Trump imposes sweeping tariffs on all Canadian products. Trump has threatened to impose a 25% tax on all products entering the U.S. from Canada and Mexico unless they stem the flow of migrants and drugs.
“WE’RE GOING TO PUT OUR LIST TOGETHER, and I’m sure the other provinces will as well. But we will go to the full extent, depending on how far this goes. We will go to the extent of cutting off their energy,” Ford said after meeting with Canadian Prime Minister Justin Trudeau and other provincial premiers.
FORD SAID HE DIDN’T WANT THIS TO HAPPEN but wasn’t optimistic Canada could avoid tariffs. “This fight is 100% coming on Jan. 20 or Jan. 21,” he said, referencing to the date of Trump’s inauguration.
THE ASSOCIATED PRESS REPORTED THAT FORD SAID “We will use every tool in our tool box to fight back. We can’t sit back and roll over. We just won’t as a country. And isn’t this a shame, our closest friends and allies.”
ABOUT 60% 0F U.S. CRUDE OIL IMPORTS are from Canada, and 85% of U.S. electricity imports as well. The energy shipments go largely to Michigan, Minnesota and New York.
CANADA IS ALSO the largest foreign supplier of steel, aluminum and uranium to the U.S. and has 34 critical minerals and metals that the Pentagon wants for national security.
“Canada, of course, will respond to unjustified tariffs,” Deputy Prime Minister Chrystia Freeland said after the meeting.
FREELAND SAID A NUMBER OF PROVINCIAL PREMIERS voiced support for a robust response to the tariffs and said that included critical minerals that are exported to the U.S.
SHE DIDN’T SPECIFICALLY MENTION OIL but said “obviously other ideas were discussed as well” when asked if Canada is considering cutting off oil exports to America.
CANADA HAS PROMISED MORE BORDER SECURITY spending to address Trump’s concerns. Ford said that will include more border and police officers as well as drones and sniffer dogs.
“A PRIORITY WILL BE to share details of this plan with the incoming Trump administration and with Canadians in the coming days,” Public Safety Minister Dominic LeBlanc said.
TRUDEAU SAID THIS week tariffs would be “absolutely devastating” for the Canadian economy, but it would also mean real hardship for Americans.
ECONOMISTS SAY companies would have little choice but to pass along the added costs, dramatically raising prices for food, clothing, automobiles, alcohol and other goods.
CANADA’S CENTRAL BANK, meanwhile, lowered its key interest rate by half a percentage point on Wednesday and called Trump’s threat to impose sweeping new tariffs on Canada “a major source of new uncertainty.”
TRUDEAU SURELY HAS ANNOYED billionaire Elon Musk, a big supporter of Trump. Trudeau on Tuesday lamented that U.S. voters selected Trump over Kamala Harris as president.
MUSK CALLED TRUDEAU “insufferable” in a post on X. “Won’t be in power for much longer,” he wrote.
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