President Donald Trump has intensified trade tensions with Canada, pledging to impose reciprocal tariffs next month in response to Ontario Premier Doug Ford’s newly enacted 25% tariff on electricity exports to three U.S. states. Ford, in turn, has threatened to take further action, warning that he could cut off electricity exports entirely if the U.S. escalates the situation.
Ford’s tariff, which took effect on Monday, applies to electricity sent from Ontario to Michigan, New York, and Minnesota. The premier framed the measure as a direct response to U.S. tariff threats, stating that while he did not wish to take such action, he blamed President Trump for forcing Canada’s hand.
Trump responded on Truth Social, calling Canada a “tariff abuser” and reiterating his administration’s stance that the U.S. will implement its own set of tariffs on April 2. The president criticized Ontario’s electricity surcharge, claiming that Canada already imposes tariffs ranging from 250% to 390% on American agricultural products. Trump dismissed Ford’s tariff as inconsequential, asserting that his administration’s broader trade measures would offset any actions taken by Canada.
Ford defended his position, stating in a Monday press conference that his actions were necessary in response to Trump’s trade policies. He argued that while Canadians maintain strong ties with Americans, the trade war was initiated by the Trump administration, not by the people of the United States. He also warned that approximately 1.5 million Americans across the three affected states would likely see increased energy costs as a result of the tariff.
The trade dispute escalated after Trump announced on Friday that his administration would consider imposing a 250% tariff on Canadian dairy imports and additional tariffs on lumber as early as next week. This follows his earlier decision to delay implementing a 25% tariff on various Mexican and Canadian imports by one month, a move that led to uncertainty in financial markets.
Canada has long imposed high tariffs on the US, they’re now just complaining because we’re actually doing something about it:
In an interview with Fox Business, Ford said he would only reconsider Ontario’s tariffs if Trump removed his threats of additional trade restrictions on Canada. He criticized the U.S. president’s economic policies, arguing that they contradict his campaign promises of reducing inflation and protecting jobs. Ford described the trade war as creating “chaos” and compared its economic effects to a bobsled rapidly descending downhill.
The tariffs represent the most extensive trade measures implemented by the U.S. since the McKinley Tariff of 1890, which set a 50% duty on manufactured goods. Trump, who has referred to former President William McKinley as the “tariff king,” has repeatedly emphasized his belief that tariffs are beneficial for the American economy. Speaking at the signing of the latest executive order, Trump acknowledged that prices in the U.S. could rise but insisted that the trade measures were necessary to protect American industries.
A senior White House official explained that the reciprocal tariff plan is intended to match or exceed trade barriers imposed by other nations on American exports. The administration has also included additional economic factors such as regulatory requirements and currency valuation in its assessment of trade fairness. The official suggested that the new measures would provide the U.S. with leverage in future negotiations.
Amid the ongoing trade dispute, Trump has continued to criticize Canadian Prime Minister Justin Trudeau, who announced his resignation in January. Trump stated on Truth Social that he recently spoke with Trudeau regarding trade and border security concerns. According to Trump, the Canadian leader attempted to downplay the fentanyl crisis, which the U.S. president linked to border security issues with both Canada and Mexico. Trump accused Trudeau of leveraging the trade dispute as a political tool to extend his leadership, questioning why Trudeau could not specify an election date.
While Trump described the conversation as ending on a “somewhat friendly” note, he reiterated his stance that Canada must take stronger action on border security and trade policies. The U.S. president suggested that his administration remains firm on its tariff plans, maintaining that America will no longer “subsidize Canada” through trade imbalances.
