The leader of Canada’s largest province is looking at fresh ways to ward off US tariffs, including wielding the power of Ontario’s liquor control board – the largest purchaser of alcohol in the world.
Earlier this week, Ontario’s premier, Doug Ford, said he could halt electricity exports to multiple American states in retaliation for tariffs promised by Donald Trump.
But his threat seemed not to dissuade the US president-elect, whose fixation on Canada’s border and an allegation that migrants and drugs are flowing into the United States has resulted in a panicked scramble from Canadian politicians.
“That’s OK if [Ford] does that, that’s fine,” Trump told a CNBC News. “The United States is subsidizing Canada, it’s truly a subsidy and we shouldn’t have to do that.”
Trump said he had “so many friends in Canada” but his country “shouldn’t have to subsidize” Canada for more than US$100bn a year, a figure he didn’t elaborate on.
Ford, known for his blunt speaking style, has described the threat by Canada’s closest ally as being “like a family member stabbing you right in the heart”.
Ontario’s liquor control board, established in 1927, is the main alcohol retailer in the province with revenues of more than C$7bn. The threat to use the province’s liquor control board, which has immense purchasing power in virtue of the province’s population of 15 million, would entail ordering it to halt buying American products.
Ford reiterated that the halt to electricity exports would be a “last resort” for his province, which relies heavily on trade with the United States. “We’re sending a message to the US … you come and 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.”
In addition to the possibility of cutting off electricity to Michigan, New York state and Minnesota, Ford’s government is now also looking at restricting exports of Canadian critical minerals required for electric vehicle batteries and supply chain.
Ford’s plan has put him at odds with other premiers, including Danielle Smith, the Alberta premier, whose province exports vast amounts of oil and natural gas to the United States.
“Under no circumstances will Alberta agree to cut off oil and gas exports,” she said, adding she preferred a strategy of “diplomacy, not threats” for the current standoff.
Sales of energy products, including oil, gas and electricity from Canada to the United States, hit roughly C$170bn last year.
Other premiers have been tight-lipped about their strategies, but most conceded there could be retaliation if needed.
“We hope it is just bluster,” said Newfoundland and Labrador premier Andrew Furey. “We’re preparing as if it is not.”
