U.S. commerce secretary calls Premier Ford as Ontario plans to put export tax on electricity

Ontario Premier Doug Ford says the LBCO will no longer stock American brands and the contract with Starlink has been scrapped as a response to tariffs.

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.

• READ MORE: Ontario removing U.S. alcohol from LCBO as ‘first round of retaliation’
• READ MORE: Doug Ford urges Canadians not to boo the U.S. anthem amid trade war
• FULL LIST: These are all the retaliatory actions Ontario has promised to take
• LIVE UPDATES: The latest developments as a trade war erupts

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.

Auto plants will close

Ford’s previously told CNN that U.S. President Donald Trump’s tariffs will have devastating impacts on the U.S. auto manufacturing sector, suggesting that assembly lines could “shut down” in the United States within a matter of days.

Ford made the comments during an interview with CNN on Tuesday morning.

“We are going to continue seeing, in the U.S., plants close, assembly lines shut down,” the premier said.

“It will only last eight to maybe 10 days at the max and then you are going to see auto plants being shut down.”

Speaking later in the day, Ford acknowledged that there will be plant closures on both sides of the border.

“This is unnecessary and we do have to retaliate and I apologize to the American people. It is not you. It is your president that is causing this problem,” Ford told CNN.

“He’s going to create job losses, inflation is going up, the market is dropping. Gas prices are going up, groceries are going up.”

Ford also announced Tuesday that Ontario will be pulling U.S. alcohol products from LCBO shelves in retaliation.

“We buy from 35 states 3.600 products,” he said. “They are coming off (the shelf).”

Ford said the U.S. president continues “moving the goalposts” in terms of his demands, noting that he has frequently changed his story about what is motivating the tariffs.

“They (Canadians) are absolutely livid. They are furious because we look at the United States as our family,” he said.

Ford reiterated that he will “use every tool in the toolbox” to protect Ontarians and Canadians.

“I have never seen patriotism run so wild across our country, right down to the grocery aisles,” he said.

“People refuse to buy American products. This is not right. We love America, we love the people, and the president needs to be stopped. Simple as that.”

Ford has urged retailers to include signage on store shelves outlining which products are Canadian made and which are made in America.

“If they don’t do it, I will legislate it,” Ford told reporters on Tuesday afternoon.

‘Toronto stands united’

In a statement released Tuesday, the mayor of Canada’s largest city said Toronto residents “stand united in a Team Canada approach” in responding to Trump’s “senseless” trade action.

“As the U.S. imposes tariffs, hardworking Torontonians are worried. People are concerned about their jobs and cost of food,” she wrote.

“Toronto stands united in a Team Canada approach to respond to this senseless trade action. We will get through this together.”

“We will respond strongly and we don’t want to,” Ford said. “On the critical minerals I will stop shipments going into the U.S. for nickel. I will shut down manufacturing because 50 per cent of the nickel you use is coming from Ontario.”