Ontario says it’ll ban sale of American-made alcohol if Trump imposes tariffs on Canadian goods

Ontario says it’ll ban sale of American-made alcohol if Trump imposes tariffs on Canadian goods

Ontario is preparing for a potential economic confrontation with the US if President-elect Donald Trump imposes tariffs on Canadian goods. The Ontario administration, led by Premier Doug Ford, is considering countermeasures like restricting electricity exports and barring the sale of American-made alcohol through the Ontario Liquor Control Board, among other actions.

In addition, Ontario may limit exports of critical minerals essential for electric vehicle batteries and prevent US-based companies from participating in the provincial government’s procurement processes.

The 60-year-old confirmed that the province is exploring restrictions on electricity exports to the US, specifically targeting Michigan, New York, and Minnesota. He warned that such a move could drive up electricity costs for Americans.

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“It’s a last resort,” Ford stated, expressing doubt that Trump would want to escalate the situation, according to the Associated Press. “We’re sending a message to the US. If you attack Ontario, you attack the livelihoods of people in Ontario and Canadians. We are going to use every tool in our toolbox to defend Ontarians and Canadians. Let’s hope it never comes to that.” Trump has threatened to impose 25% tariff on all imports from Canada and Mexico unless the countries take stronger measures to address migration and the flow of drugs.

Trump dismissed concerns about potential consequences of tariffs on Canadian exports, stating, “That’s OK if he [Ford] does that. That’s fine.” He remarked, “The United States is subsidising Canada and we shouldn’t have to do that. And we have a great relationship. I have so many friends in Canada, but we shouldn’t have to subsidise a country.”

Also read: Canada lifts extra security screening for India-bound flyers: What it means

However, off-camera, Trump expressed hope that the two countries could resolve the situation amicably, according to AP. Ford later shared his agreement with Trump’s sentiment, saying, “President Trump told a reporter that he hopes the US and Canada can work something out. I agree.”

Nonetheless, Ford emphasised that a resolution is possible if Canadian Prime Minister Justin Trudeau strengthens the country’s border security and increases military spending to meet NATO’s 2% GDP target.

(With inputs from AP)

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