Why It Matters

Trump said on Thursday he would grant Canada and Mexico a one-month reprieve on U.S. tariffs slapped on many of the two countries’ exports, exempting products that fall under a trade agreement inked during the Republican’s first term in office.

On March 4, Trump had imposed 25 percent tariffs on goods produced by Canada and Mexico, sparking turmoil in the global financial markets. In separate remarks on Friday, Trump alluded to possible fresh tariffs on Canadian lumber and dairy products.

Under Trump’s flip-flopping raft of tariffs, Washington placed a 10 percent tariff on Canadian energy, the major supplier to U.S. states hugging the northern border. Ford has pledged retaliatory 25 percent tariffs on Canadian electricity sent to the U.S. states of New York, Minnesota and Michigan from Ontario, to take effect on Monday.

The move will spike power bills for roughly 1.5 million U.S. homes and businesses, Ford said. Canadian Prime Minister Justin Trudeau had slapped the U.S. with 25 percent tariffs on more than $20 billion worth of American imports, describing the Trump administration’s tariffs as “a very dumb thing to do.”

What To Know

Ford told CBS News in an interview that Trump “can’t attack our country economically and expect us to roll over.”

Electric bills for Americans across the border “are going to go up,” following the pattern of rising gas prices for northeastern U.S. states, Ford said.

Ford said earlier this month he would turn off the tap of Canadian-generated energy to swathes of the U.S. “with a smile on my face,” if the Trump administration attempted to “annihilate Ontario.” The Canadian province relies on trade with the U.S., including for critical minerals. Ford said that if the province of Ontario was a stand-alone country, it would the third-largest trading partner with the U.S.Ford said earlier this month he would turn off the tap of Canadian-generated energy to swathes of the U.S. “with a smile on my face,” if the Trump administration attempted to “annihilate Ontario.” The Canadian province relies on trade with the U.S., including for critical minerals. Ford said that if the province of Ontario was a stand-alone country, it would the third-largest trading partner with the U.S.

Lutnik had requested Ford halt Canadian retaliatory tariffs “to a certain degree,” Ford said, to which the Ontario premier responded: “No.” Ford said on Tuesday that Ontario “won’t hesitate to increase the charge or shut the electricity off completely.”

Minnesota Governor Tim Walz said earlier this week he had spoken with Ford and Manitoba Premier Wab Kinew to “try to find a way through this unnecessary and costly trade war.”

“While the President may not value the partnerships that contribute billions of dollars to our economy, Minnesota does,” Walz said in a statement posted to social media. “What a gentleman he is,” Ford said of Walz.

The Ontario premier, a conservative political figure, said he had backed Trump’s victory in the U.S. initially, but “then he stabbed us.”

“I thought he would do a good job,” Ford said. “Man, was I wrong.”

He added that he hoped to “repair this relationship,” but made a barbed remark about the U.S. president “cozying up with Putin,” referring to Russian President Vladimir Putin.

What People Are Saying

Ford told CBS that Trump had declared “an economic war” on the U.S.’s “closest friends,” but that enacting retaliatory tariffs raising prices for American consumers was “the last thing I want to do.”

Trudeau said earlier this month that the White House had “chosen to launch a trade war that will, first and foremost, harm American families.

What Happens Next

It is not yet clear whether the Canadian energy tariffs will take effect on Monday, and how far Trump will go with tariffs directed north of the U.S. border.

Source: Newsweek