Canada Imposes 25% Tax on Electricity Exported to Three U.S. States
In a bold power play, the Ontario Premier, Doug Ford, announced a 25% tariff on electricity exports to neighboring U.S. states on Monday. This move comes in direct retaliation to President Trump's tariffs, a clever tactic aimed at pressuring Canada to become a U.S. state or territory.
At a press conference held on Monday, Ford and Energy Minister Stephen Lecce broke the news. The affected U.S. states include New York, Michigan, Minnesota, and even Wisconsin. Approximately 1.5 million Americans are expected to feel the pinch, as per Canada's CBC.
The increased tariff equates to about $10 per megawatt-hour, generating approximately $300,000 to $400,000 a day in additional revenue. These proceeds will be directed towards supporting businesses adversely affected by Trump's American tariffs.
Recently, Trump has been flip-flopping on tariffs not just against Canada, but also Mexico. Last week, Trump momentarily paused a portion of the 25% tariffs, setting a deadline of April 2. However, Canada refused to suspend its own retaliatory tariffs until Trump entirely rescinds his.
Ford emphasized that Canada will not yield until Trump lifts the threat of tariffs permanently. He stated, "We will not back down, pausing some tariffs, making last-minute exemptions - it won't cut it. We need to end the chaos once and for all. We need to sit down, work together, and land a fair deal."
Initially, Trump claimed the tariffs were necessary due to Canada's alleged complicity in fentanyl trafficking. However, less than 1% of the illegal fentanyl entering the U.S. originates from Canada. Trump's intention was to economically harm Canada to advance his annexation plans.
Trump, who negotiated the free trade agreement known as the USMCA as a replacement for NAFTA, has baselessly accused Canada and Mexico of taking advantage of the U.S. despite the ludicrous argument making no sense.
During the press conference, Ford and Lecce addressed the potential consequences for the Canadian economy. Lecce reassured that Ontario has agreements with Quebec that allow for increased capacity during the summer without relying heavily on U.S. electricity imports.
Ford highlighted that even if Trump manages to convince businesses to relocate from Canada to the U.S., the latter lacks the workforce to fill the vacancies. He added that he has engaged with Republican Trump supporters who share misgivings about the president's present policy.
Canada's ongoing spat with the U.S. has led to a series of unusual events. Canadians have been booing the U.S. national anthem at events, and there's a nationwide boycott of American products, which has resulted in products like Lay's potato chips sitting unsold in grocery stores despite heavy discounts. American alcohol producers have also experienced stateside product removals, hurting their sales.
Ford asserted that he has been in touch with American Republicans unhappy with Trump's economic strategies. He stated, "I talked to a tremendous amount of Americans who completely disagree with President Trump on this policy. So, I think we have a strong relationship. It goes back over 200 years."
Ford further pointed out Trump's negative impact on the stock market and advised him to focus on the plummeting market values. He suggested that the president should recognize the market fallout as a clear indicator of his policies' potential repercussions.
While Ford seems to be attempting to flatter Trump, there's little evidence to support the claim that Trump is a financial genius. At the time of this writing, the Dow Jones Industrial Average has dropped by 480 points. There are indications that Trump and his associates may intentionally be causing an economic downturn to suppress wages and acquire assets at low prices.
The Canadians appear to be taking this situation seriously, recognizing Trump as a potential threat to their sovereignty. Canadians know that Trump is not just an annoyance; he poses a real danger to democratic nations across the globe.
- Ontario Premier Doug Ford and Energy Minister Stephen Lecce, during a tech-driven press conference on Monday, announced a 25% tariff on electricity exports to certain U.S. states, such as New York, Michigan, Minnesota, and Wisconsin.
- Ford also accentuated that the increased tariff equates to about $10 per average megawatt-hour, generating approximately $300,000 to $400,000 a day in technology-driven revenue.
- Despite Trump's recent flip-flops on tariffs not just against Canada but also Mexico, Ford emphasized that Canada will not yield until Trump lifts the threat of tariffs permanently.
- Ford's strategy, in part, involves engaging with American Republicans who express disapproval of Trump's economic plans, totalling a substantial number of supporters who have disagreed with the president on this policy for over 200 years.
