Pledging never to relent and to destroy President Trump, Ontario Premier Doug Ford placed a 25% tariff on all electricity delivered to the United States. After announcing the tariff Ford said, “It needs to end. Until these tariffs are off the table, until the threat of tariffs is gone for good, Ontario will not relent,” Ford said.

President Trump has found out about the Ontario tariff and has responded, big time:

[Source]

President Trump made the following announcement:

“Based on Ontario, Canada, placing a 25% Tariff on “Electricity” coming into the United States, I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD. This will go into effect TOMORROW MORNING, March 12th.

Also, Canada must immediately drop their Anti-American Farmer Tariff of 250% to 390% on various U.S. dairy products, which has long been considered outrageous.  

I will shortly be declaring a National Emergency on Electricity within the threatened area. This will allow the U.S to quickly do what has to be done to alleviate this abusive threat from Canada. If other egregious, long time Tariffs are not likewise dropped by Canada, I will substantially increase, on April 2nd, the Tariffs on Cars coming into the U.S. which will, essentially, permanently shut down the automobile manufacturing business in Canada. Those cars can easily be made in the USA!

Also, Canada pays very little for National Security, relying on the United States for military protection. We are subsidizing Canada to the tune of more than 200 Billion Dollars a year. WHY??? This cannot continue.

The only thing that makes sense is for Canada to become our cherished Fifty First State. This would make all Tariffs, and everything else, totally disappear. Canadians’ taxes will be very substantially reduced, they will be more secure, militarily and otherwise, than ever before, there would no longer be a Northern Border problem, and the greatest and most powerful nation in the World will be bigger, better and stronger than ever — And Canada will be a big part of that.

The artificial line of separation drawn many years ago will finally disappear, and we will have the safest and most beautiful Nation anywhere in the World — And your brilliant anthem, “O Canada,” will continue to play, but now representing a GREAT and POWERFUL STATE within the greatest Nation that the World has ever seen! (more)

As previously noted, President Trump has a massive amount of economic leverage he can bring to bear on Canada from multiple simultaneous sectors, including autos, banking and finance.

Canada has a very small number of economic responses that can be triggered against the USA; however, some of their initial retaliatory effort is not tariffs but rather full-blown Canadian import bans of certain US products.

Minnesota Power bought only about $300,000 worth of electricity from Ontario last year, and only for four months out of the year. The utility serves over 150,000 customers, mostly with power it generates itself in Minnesota. 

Matt Helms, public information of officer for the Michigan Public Service Commission, said the impact on Michigan customers is likely to be “small” and most of Michigan’s electricity is produced by utility companies in the state or through long-term contracts. (source)

Posted in Canada, Donald Trump, Economy, President Trump, US dept of agriculture, US Treasury, USA
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