Ontario to restrict electricity exports to US and bar American-made alcohol if Trump tariffs applied

TORONTO (AP) — Canada's most populous province may bar American-made alcohol in addition to restricting electricity exports to Michigan, New York and Minnesota if US President-elect Donald Trump imposes sweeping tariffs on all Canadian products, a senior official said Thursday.

The official in Ontario Premier Doug Ford's government said that it's contemplating restricting Ontario's liquor control board from buying American-made alcohol.

Ontario is also considering restricting exports of critical minerals required for electric vehicle batteries and preventing US-based companies from the government's procurement process, the official said on condition of anonymity because the functionary wasn't authorised to speak publicly about the potential measures.

Ford confirmed on Wednesday evening that Ontario is contemplating restricting electricity exports to the three states. He reiterated that on Thursday and said it would make electricity unaffordable for Americans. Ford spoke to Michigan Governor Gretchen Whitmer on Thursday, her office said.

“It's a last resort,” Ford said.

“I don't think President-elect Trump wants that to happen. We're sending a message to the U.S. If you come and attack Ontario, you attack the livelihoods of people in Ontario and Canadians, we are going to use every tool in our tool box to defend Ontarians and Canadians. Let's hope it never comes to that.”

Trump has threatened to impose a 25% tax on all products entering the United States from Canada and Mexico unless they stem the flow of migrants and drugs.

Ontario powered 1.5 million homes in the US in 2023.

“That's OK if he does that. That's fine,” Trump told CNBC when asked about Ford's remarks on the floor of the New York Stock Exchange.

“The United States is subsidising Canada and we shouldn't have to do that,” Trump said. “And we have a great relationship. I have so many friends in Canada, but we shouldn't have to subsidise a country.”

The CNBC reporter said Trump told him off camera that they hope they can work something out with Canada.

“President Trump told a reporter that he hopes the U.S. and Canada can work something out. I agree,” Ford later posted on X.

Ford said the good news is the pathway to a deal isn't complicated, noting Canadian Prime Minister Justin Trudeau needs to protect the border and spend more on the military to meet NATO's 2% GDP spending target.

The premier of the oil rich Canadian province of Alberta ruled out cutting off oil exports.

“Under no circumstances will Alberta agree to cut off oil and gas exports,” Alberta Premier Danielle Smith said. “Instead, we're taking a diplomatic approach and we're meeting with our allies in the US. We're making the case for Alberta oil and gas to be part of the solution to energy affordability and energy security.”

Canada supplies more oil to the US than any other country, nearly 4.5 million barrels a day. About 60% of U.S. crude oil imports are from Canada and a fifth of the crude refined in the US comes from Canada.

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