Canada may cut U.S. power exports as Trump reignites trade war

Canada may cut off or raise the price of power exports to the U.S. to retaliate against President Trump’s new tariff war, a move that would further raise prices for beleaguered American consumers especially in northern border states like New York.

After Canadian Prime Minister Mark Carney vowed to hit back with “dollar for dollar” measures against the U.S., Doug Ford, the premier of the industrial powerhouse province of Ontario, said Canada should pull the plug on electricity it sells to utilities on the U.S. side of the border in New York and other northern states.

“We power 1.5 million homes and businesses,” Ford said. “Everything’s on the table. I’ll do whatever it takes.”

If Trump continues to boost tariffs on Canadian products, Ford said American consumers should be ready to pay a serious price.

“He better have a pack of batteries,” Ford said.

Carney also hinted he might seek to use exports of oil, gas, power and critical minerals as a painful bargaining chip in the escalating trade war between the world’s two biggest trading partners.

“Canada fuels American growth: supplying 99% of their natural gas imports, 85% of electricity imports, and 60% of crude oil imports,” he said in a muscular weekend speech. “I don’t think they want us to stop sending it.”

The saber-rattling from the North comes as Trump Monday vowed to jack up tariffs to 50% on Canadian-made cars, aluminum, steel and other products, effective Jan. 1.

That was just the latest roundhouse punch in the trade war that flared up again after talks between the two allies and neighbors unexpectedly collapsed Friday.

“On Trade, and in other ways, also, they are among the worst Nations in the World to deal with,” Trump wrote on his social media site. “They feel entitled, and yet, WE DON’T NEED CANADA, THEY NEED US!”

Canada says it will release a list of American goods that will face new tariffs or restrictions after Labor Day.

Even if Canada does not hit back as forcefully as feared, the new tariffs come at the worst possible moment for congressional Republicans as they hope to cling to control of both houses of Congress.

Polls say tariffs are very unpopular among American voters and Trump is getting historically low marks for dealing with the economy and increasing prices.

The trade war could have an outsized impact on the political environment in several key states that are midterms battlegrounds, including Michigan, Ohio, Maine Iowa and Alaska.

In an unfortunate coincidence for the GOP, Vice President JD Vance Monday planned to deliver a speech at a carbon composite manufacturing plant in Maine, which is the state that has perhaps the most to lose from a renewed trade war with Canada.

Sen. Susan Collins (R-Maine), who faces a tough reelection battle against Democrat Troy Jackson, skipped the event, citing unspecified previous commitments on a late summer Monday afternoon.