Ontario mulls U.S. booze ban as Trump brushes off Ford's threat to cut electricity

Ontario Premier Doug Ford speaks to members of the media at Queen's Park Legislature in Toronto on Thursday December 12, 2024. THE CANADIAN PRESS/Chris Young

OTTAWA -

Incoming U.S. president Donald Trump is brushing off Ontario's threat to restrict electricity exports in retaliation for sweeping tariffs on Canadian goods, as the province floats the idea of effectively barring sales of American alcohol.

On Wednesday, Premier Doug Ford said Ontario is contemplating restricting electricity exports to Michigan, New York state and Minnesota if Trump follows through on a threat to impose a 25 per cent tariff on imports from Canada.

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"That's OK if he that does that. That's fine," Trump told American network CNBC when asked Thursday about Ford’s remarks on the floor of the New York Stock Exchange.

“The United States is subsidizing Canada and we shouldn’t have to do that," Trump added.

"And we have a great relationship. I have so many friends in Canada, but we shouldn’t have to subsidize a country," he said, claiming this amounts to more than US$100 billion annually in unspecified subsidies.

Meanwhile, an official in the Ford government says it's considering restricting the Liquor Control Board of Ontario from buying American-made alcohol. The province says the Crown agency is the largest purchaser of alcohol in the world.

The province also says it could restrict exports of Canadian critical minerals required for electric-vehicle batteries, and bar American companies from provincial procurement.

Ford doubled down Thursday on the idea of cutting off energy exports. The province says that in 2023, Ontario exported enough energy to power 1.5 million homes in those three states.

"It's a last resort," Ford said. "We're sending a message to the U.S. (that if) you come and attack Ontario, you attack livelihoods of people in Ontario and Canadians, we are going to use every tool in our tool box to defend Ontarians and Canadians. Let’s hope it never comes to that."

Ontario Energy Minister Stephen Lecce said the province would rather have co-operation with the U.S., but has mechanisms to "end power sale into the U.S. market" the day Trump takes office on Jan. 20.

Alberta Premier Danielle Smith ruled out following suit.

"Under no circumstances will Alberta agree to cut off oil and gas exports," she said. "Our approach is one of diplomacy, not threats."

Michael Sabia, president and CEO of Hydro-Québec, said "it's not our current intention" to cut off Quebec's exports to Massachusetts or New York state, but he conceded it might be possible.

"Our intention is to respect those contracts, both because they're legally binding, but also because it's part of, in our view, a sound relationship with the United States," he said. "It's a questionable instrument to use in a trade conflict."

Manitoba Premier Wab Kinew would not directly say whether Manitoba would threaten to withhold hydroelectric exports.

"We are preparing our list and starting to think through what those options should look like," he said. "I'm not going to make specific news today about items that we're looking at."

Kinew added that some premiers felt retaliatory measures wouldn't work in a call Trudeau held Wednesday.

Newfoundland and Labrador Premier Andrew Furey said "we have no interest in stopping" the export of energy to the U.S., adding that a trade war would hurt both countries.

"We hope it is just bluster; we're preparing as if it is not," he said.

Canada supplies more oil to the U.S. than any other country. About 60 per cent of U.S. crude oil imports are from Canada, and 85 per cent of U.S. electricity imports as well.

Canada sold $170 billion worth of energy products last year to the U.S. It also has 34 critical minerals and metals the Pentagon is eager for.

Trump has threatened to impose a 25 per cent tax on all products entering the United States from Canada and Mexico unless they stem the flow of migrants and drugs.

Canadian officials have said it is unfair to lump Canada in with Mexico.

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U.S. customs agents seized 43 pounds of fentanyl at the Canadian border last fiscal year, compared with 21,100 pounds at the Mexican border.

Canada since has promised more border security spending to address Trump's border concerns. Ford said that will include more border and police officers, as well as drones and sniffer dogs.

This report by The Canadian Press was first published Dec. 12, 2024.

— With files from The Associated Press, Liam Casey in Toronto, Lisa Johnson in Edmonton and Steve Lambert in Winnipeg.