US Places 25% Tariff on Canadian Goods
US President Donald Trump recently announced a 25% tariff on Canadian imports. In return, Ontario made an announcement of a 25% hike in export duties on electricity being supplied to three US states. Trump reacted to this with criticism, labeling Canada the "biggest tariff abuser."
Trump's Response to Ontario's Statement
Venting anger, Trump said Canada has no right to charge the US with electricity tariffs. Trump confidently asserted the US is not going to subsidize Canada, saying, "We don't need your cars, lumber, energy, electricity, or fuel. You will find out soon."
US Dependence on Canadian Energy
The US is highly dependent on Canada for vital energy products such as crude oil, petroleum products, natural gas, hydropower, and electricity. Any disturbance in this trade balance can affect both nations economically.
Ontario Premier's Response to US Tariffs
Ontario Premier Doug Ford reacted forcefully to Trump's tariffs. Ford issued retaliatory threats, including cutting power and canceling a $100 million contract with Elon Musk's company Starlink, with a view to hurtling Toronto into darkness. He underscored the point that Canada would not let its economy be damaged without reprisal.
"We are counting on one another's resources," said Ford, noting that the US needs to be affected too. He continued by saying that Ontario will also ban US-made booze from its retail stores as retaliation.
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