Ontario slaps 25% tax increase on electricity exports to US in response to Trump’s trade war
By: ROB GILLIES | AP
Our international relationships are just fine. No damage. No animosity.
Trump is fixing high prices by causing prices to rise. And Trump supporters keep defending this buffoon.
Trump is doing a great job if the job is defined as fucking up.
S E E D E D C O N T E N T
TORONTO (AP) — Ontario’s premier, the leader of Canada’s most populous province, announced that effective Monday it is charging 25% more for electricity to 1.5 million Americans in response to U.S. President Donald Trump’s trade war.
Ontario provides electricity to Minnesota, New York and Michigan.
“I will not hesitate to increase this charge. If the United State escalates, I will not hesitate to shut the electricity off completely,” Ontario Premier Doug Ford said at a news conference in Toronto.
“Believe me when I say I do not want to do this. I feel terrible for the American people who didn’t start this trade war. It’s one person who is responsible, it’s President Trump.”
Ford said Ontario’s tariff would remain in place despite the one-month reprieve from Trump, noting a one-month pause means nothing but more uncertainty. Quebec is also considering taking similar measures with electricity exports to the U.S.
Ford’s office said the new market rules require any generator selling electricity to the U.S. to add a 25% surcharge. Ontario’s government expects it to generate revenue of $300,000 Canadian dollars ($208,000) to CA$400,000 ($277,000) per day, “which will be used to support Ontario workers, families and businesses.”
The new surcharge is in addition to the federal government’s initial CA$30 billion ($21 billion) worth of retaliatory tariffs have been applied on items like American orange juice, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles and certain pulp and paper products.
Trade war intensifies
Trump launched a new trade war last week by imposing tariffs against Washington’s three biggest trading partners, drawing immediate retaliation from Mexico , Canada and China and sending financial markets into a tailspin.
Trump later said he has postponed 25% tariffs on many goods from Canada and Mexico for a month, amid widespread fears of a broader trade war .
Ford estimated it will add about CA$100 ($69) a month to the bills of each American affected.
“It needs to end. Until these tariffs are off the table, until the threat of tariffs is gone for good, Ontario will not relent,” Ford said.
Ford said Trump changes his mind every day, but if he continues to attack Canada he will do everything it takes to maximize the pain.
“Republicans, at least the ones I speak to, do not agree with President Trump but they are too scared to go out there and say it publicly,” Ford said. “It’s a shame but we need to end this.”
Trump has urged U.S. automakers to move auto production from Canada and Mexico to the U.S. Last week Trump granted a one-month exemption to 25% tariffs on vehicles and auto parts traded through the North American trade agreement USMCA after speaking with leaders of automakers Ford, General Motors and Stellantis. Ontario is the auto sector hub of Canada.
Premier Ford also noted Trump is threatening Canada with steel, aluminum and diary tariffs.
“I will do whatever it takes to maximum the pain against Americans,” Ford said.
Stephen Lecce, Ontario’s minister of energy and electrification, said the U.S. needs Canada’s power and it could impact other states as well as the three states often resale Ontario’s electricity. “It is regrettable we are here,” Lecce said.
Ford calls for export taxes on Canadian oil
Trump’s trade war and his talk of making Canada the 51st U.S. state have infuriated Canadians, who are booing the American anthem at NHL and NBA games. Some are canceling trips south of the border, and many are avoiding buying American goods when they can.
Ford’s Progressive Conservative government just won reelection by standing up for Canada against Trump.
Ford said the Canadian province of Alberta should agree to put an export tax on oil. Alberta provides 4.3 million barrels of oil a day to the U.S.
“You want to talk about a Trump card. That will instantly change the game,” Ford said. “I know the Americans. If all of a sudden their gas prices go up a dollar a gallon they will lose their minds.”
Despite Trump’s claim that the U.S doesn’t need Canada, nearly a quarter of the oil America consumes per day comes from Canada. About 60% of U.S. crude oil imports are from Canada, and 85% of U.S. electricity imports as well.
Canada is also the largest foreign supplier of steel, aluminum and uranium to the U.S. and has 34 critical minerals and metals that the Pentagon is eager for and investing for national security. Nearly CA$3.6 billion ($2.7 billion) worth of goods and services cross the border each day.
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Nothing like a PotUS who gratuitously creates chaos and animosity.
Will Trump supporters ever catch on to the damage this buffoon is causing and start criticizing this irrational loose-cannon rather than supporting him?
this is trump delivering on his campaign promise to bring down energy costs for the morons that voted for him ...
I suppose everyone has their breaking point, but what will be left of our country when they do?
Trump's madness should have been addressed years ago, on Jan 7th 2021 (if not sooner). But no, the MAGA would rather join QAnon and go down the rabbitt hole of Trump cultism.
I agree. Worse, there seems to be no end to the depths supporters will go to blindly support this idiot.
If this doesn't cause Trump to slow his roll and be rational about all this, I don't know what will. At some point his advisers and members of his cabinet need to speak up and talk some sense into him. I would expect the turnover rate in the administration is going to spike if he doesn't change his ways, we'll see.
Normally I would agree with you.
But it is well known that tariffs increase consumer prices. It takes absolutely no special intelligence to see that domestic importers who pay a tariff will pass this onto consumers. Yet, even though his supporters expect him to address high prices, he still engages in these pointless tariffs.
Trump is both stubborn and stupid. How does one reason with stubborn stupidity?
I do believe there is a point where even this buffoon will recognize that what he prizes most (adoration from his supporters) is going to wane and he will stop his idiotic tariffs to generate revenue nonsense. I hope this is the point. I am not going to try to make any predictions on the irrational mind of Trump. Especially when we can see even in forums that his supporters apparently will defend him no matter what.
Not quite, it is Trump and those who continue to stupidly support him.
Canada just removed the tariffs, and yet trumps are still in effect.
Do you think it is good for Trump to not remove the tariffs on Canada?
As of right now, market is down 420 pts. today . It stabilized briefly about an hour ago when a new inflation report came out slightly better than expected, but has since drifted down again.