Canada's most populous province, Ontario, is considering potential measures in response to U.S. President-elect Donald Trump's threat to impose tariffs on Canadian products. The province may restrict American-made alcohol purchases by its liquor control board and limit exports of critical minerals and electricity to Michigan, New York, and Minnesota.
Ontario Premier Doug Ford confirmed the possibility of restricting electricity exports, emphasizing that it would impact American consumers by making electricity unaffordable. Trump's proposed 25% tax on Canadian imports has prompted these considerations.
Alberta, a major oil exporter to the U.S., has ruled out cutting off oil supplies. Instead, the province is pursuing diplomatic efforts to promote Alberta's oil and gas as part of the energy solution.
Canada supplies a significant amount of oil and electricity to the U.S., with Alberta alone providing nearly 4.5 million barrels of oil daily. Any tariff on Alberta oil could raise gasoline prices by a dollar per gallon.
Canada is also a crucial source of minerals and metals for the U.S., with 85% of electricity imports and 34 critical minerals coming from Canada. The two countries share a robust trade relationship, with billions of dollars in goods crossing the border daily.
Canadian officials are enhancing border security measures to address U.S. concerns, including deploying more officers, drones, and sniffer dogs. Alberta is establishing a sheriff patrol unit along the border to prevent illegal crossings and trafficking.
Trade discussions between Canada and the U.S. have highlighted the trade deficit issue, with Canada emphasizing its energy exports and high prices. Canadian Prime Minister Justin Trudeau warned that U.S. tariffs would have devastating effects on both economies.
Canada previously imposed duties on U.S. products in response to American tariffs on Canadian steel and aluminum. Canadian officials stress the differences between Canada and Mexico in terms of illegal migration and drug trafficking to the U.S.
Provincial leaders like Quebec's Françoise Legault and Newfoundland's Andrew Furey are engaging with U.S. counterparts to address concerns and avoid a damaging trade war. The hope is to resolve differences through dialogue rather than escalating tensions.
