U.S. Commerce Secretary Howard Lutnick called Premier Doug Ford on Tuesday for a “tough and aggressive” conversation after the Ontario government announced its plan to slap a 25 per cent export tax on the electricity it supplies to three U.S. states, CTV News has learned.
Sources said Lutnick asked Ford to back off his retaliatory tariffs, but the Ontario premier refused so long as U.S. President Donald Trump’s sweeping tariffs remain in effect.
During a news conference on Tuesday afternoon, Ford said the export tax would apply to electricity that Ontario sends to 1.5 million homes and businesses in New York, Michigan and Minnesota. It is not immediately clear when the tax would go into effect.
Ford later released a letter he sent to the senators, congressmen, congresswomen and governors of those three states to inform them about the province’s plan to implement the surcharge on electricity if the Trump administration follows through on any more tariffs.
“This surcharge would be in addition to actions Canadian governments are already taking,” the premier wrote.
When asked about whether this move will require the legislature to resume, Ford said he is still looking into how quickly a 25 per cent export tax can be imposed on electricity.
“The federal government is in charge of any export so we will be working with the federal government,” Ford said, adding that he will be speaking to the prime minister this afternoon to discuss what the province can do to speed up retaliatory measures.
After a snap election last week, members of provincial parliament won’t be sworn in any earlier than the week of March 17.
He added that if tariffs persist into April, the province will consider cutting off electricity to the U.S. Ford mused that the extra electricity could be used to power Ontario manufacturing plants.
“I feel terrible, because they are great governors. I know all three of them. I work well with them. I met them all. We’ve got them to Ontario. They are great people. I have to apologize to the governors and the American people. You need to make sure you send a message to President Trump,” Ford said.
The premier further announced that U.S. companies will be banned from taking part in government procurement and he urged other municipalities in the province to do the same.
“I’ve asked the Ontario Public Service, our ministers and our deputy ministers, to go through with a fine tooth comb and anything, no matter if it is services through the tech sector or any other products, we need to stop immediately. And if they come at us, sue us, so be it. We are standing up for Ontario. We are standing up for Canada and we are willing to fight in court,” Ford said.
“I want to inflict as much pain as we possibly can.”
Additionally, Ford has said Ontario is ripping up a $100 million agreement with Elon Musk’s Starlink.
Ford’s comments came just hours after Trump hit Canada and Mexico with 25 per cent across-the-board tariffs. The
federal government announced that it will immediately put into place retaliatory tariffs on $30 billion of U.S. goods and then more tariffs on another $125 billion in U.S. goods three weeks later.
“The coming days and weeks will be hard. Businesses and families will feel the pain of this needless fight,” Ford said Tuesday. “We are going to get through this more united than ever before.”
Ford said that the province is also pursuing plans to halt the supply of nickel to the United States but will need guidance by the federal government on how to proceed.
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