Premiers disagree on cutting energy to U.S. in response to Trump's tariff threat

Some of Canada's premiers appeared to disagree with Ontario Premier Doug Ford on his approach to retaliatory measures, less than a day after he threatened to cut off the province's energy supply to the U.S. if president-elect Donald Trump follows through on his threat of punishing tariffs.

Speaking to reporters on Thursday, Ford said, "Well, first of all, it's a last resort," when asked if Ontario can move ahead with cutting off energy on its own.

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"What we're sending (is) a message to the U.S.: 'You come and attack Ontario, you attack livelihoods of people of Ontario and Canadians, we're going to use every tool in our toolbox to defend Ontarians and Canadians across the border,'" Ford said.

Last month, the incoming U.S. president threatened to impose a 25 per cent tariff on all Canadian imports on his first day in office, until Canada addresses his border security concerns.

Following a meeting on Wednesday between Prime Minister Justin Trudeau and the premiers to discuss the border and potential retaliation, Ford told the media that Ontario "will go to the full extent depending how far this goes."

"We will go to the extent of cutting off their energy, going down to Michigan, going down to New York state and over to Wisconsin," Ford said Wednesday. "I don't want this to happen, but my number one job is to protect Ontario, Ontarians and Canadians as a whole, since we're the largest province."

According to Ontario's Independent Electricity System Operator (IESO) — the Crown corporation responsible for electricity exports to the U.S. — Ontario exported 12,126 gigawatt hours of electricity in 2023.

More than half of that — 7,718 gigawatt hours — went to Michigan, 4,149 went to New York and another 275 gigawatt hours went to Minnesota. One gigawatt of electricity is enough to power 100 million LED light bulbs.

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Asked by CNBC on Thursday about Ford's comments, Trump said, "Well, that's OK. That's fine."

"I have some friends in Canada, but we shouldn't have to subsidize a country, and we subsidize them for more than a hundred billion dollars a year. We shouldn't have to be doing that," Trump said.

United Conservative Party Leader Danielle Smith addresses party members at their annual meeting in Red Deer, Alta., Nov. 2, 2024.THE CANADIAN PRESS/Jeff McIntosh

Smith, Legault push back against Ford

But other provinces do not appear to agree with Ford's threat to cut off energy.

"Let me be clear, from the Alberta perspective, under no circumstances will Alberta agree to cut off oil and gas exports," Alberta Premier Danielle Smith told reporters.

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Unlike Ford, Smith does not support retaliatory tariffs.

"Instead, we're taking a diplomatic approach, and we're meeting with our allies in the U.S.," Smith said. "We're making the case for Alberta oil and gas to be part of the solution to energy affordability, to energy security."

Smith was in Las Vegas, Nev., this week to promote Alberta at the Western Governors' Association winter meeting. On Thursday, Smith also announced her province will invest $29 million to create a team of specially trained sheriffs tasked with patrolling the Alberta-U.S. border.

Meanwhile, at an announcement on Thursday between Quebec and Newfoundland and Labrador to settle a decades-old energy contract between the two provinces, Quebec Premier François Legault joked to the audience, saying, "By the way I won't threaten Donald not to send electricity."

When asked about Ford's threat, Legault said the best choice is for Trudeau to respond to Trump's border concerns with a plan.

"I think we have to do that," Legault said. "It's a lot better than getting 25 per cent tariffs starting on Jan. 21."

"So I prefer that than starting a war and stopping sending energy to the United States," he added.

Quebec Premier Francois Legault sums up the fall session during a news conference at the premier's office in Quebec City, Dec. 6, 2024. THE CANADIAN PRESS/Jacques Boissinot

Newfoundland and Labrador Premier Andrew Furey agreed.

"Certainly from Newfoundland and Labrador's perspective, we have no interest in stopping the flow of oil and gas," Furey said.

Last weekend, Legault met with Trump in Paris, where both attended the reopening of the Notre Dame Cathedral. Legault said Trump told him "very clearly that we can avoid those tariffs if we do what needs to be done with the borders."

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Legault's tariff assessment appears to differ from Ford's, who on Wednesday said, "This fight is 100 per cent coming on Jan. 20 or Jan. 21."

When asked on Wednesday about Ford's characterization of the tariff threat, Deputy Prime Minister and Finance Minister Chrystia Freeland would not answer directly.

"During the NAFTA negotiations, I learned that it's important not to get ahead of ourselves, and it is important never to answer hypothetical questions," Freeland said. "I think we also learned that Canada needs to hope for the best and prepare for the worst."

This week, Trudeau said Canada "will respond" if the U.S. moves ahead with a 25 per cent tariff. The federal government also says it will publicly present a border plan in the coming days.