Ontario’s Position on Potential U.S. Tariffs

Doug Ford is hosting the premier in Toronto starting today and then tomorrow, where they are hoping to show a united front in the face of U.S. tariff threats. This meeting also comes just days after Ford threatened to cut off Ontario’s energy supply to the United States if the president-elect moves forward on the 25% tariffs. Premier Ford has said Ontario would consider cutting off energy to the U.S. if there is a 25% tariff on all goods. He wants a deal with the president-elect. The president-elect said he wants a deal as well.

Minister of Energy and Electrification Steven Leche explained that the preference of the Ontario government is to get a deal. He said, “We know there’s a path to get a deal and the feds will need to step up with respect to border investments to end the movement illegal of people and drugs, and likewise step up with respect to the 2% GDP target on defense spending. The premier was serious that if they proceed with this 25% increase on a tariff on all goods, then certainly Ontario must be ready with a robust suite of actions to respond.”

When asked if Ontario would be breaking contractual obligations by turning off the lights for certain U.S. states, Leche said it can be done with notice. The value of this energy is significant—upwards of $700-$800 million—accounting for 8-10% of Ontario’s total electricity generation. It would impact states like Michigan, New York, and Minnesota.

Leche stressed that no one wants a trade war. Ontario wants a deal in the national interest. If tariffs are imposed, Ontario must be ready on day one. He noted that when President Trump imposed tariffs before, it lasted roughly 40 days and had an impact. Leche said, “We need to demonstrate strength and unity and show them that we will respond even though we want to avert that outcome.”

Defense Spending and Border Security as Key Factors

Leche stated that the feds need to step up on defense spending and border controls. He believes the president-elect’s psychology respects strength. The premier wants a deal, and there is a path to fix this by addressing vulnerabilities at the border and meeting the 2% GDP target on defense spending. Although Donald Trump has not pointed directly to defense spending as an irritant, Ontario’s view is that fixing these known issues can help avert tariffs.

Communications with U.S. Leaders and Emphasizing Economic Ties

Premier Ford spoke with governors in Michigan and New York. According to Leche, these were constructive discussions emphasizing that the relationship will endure, jobs depend on the relationship, and there’s a trillion dollars of trade at stake. Ontario has engaged in an ad program in the U.S. to speak directly to Americans, reminding them of shared values and mutual benefits.

Minister Leche also met with the U.S. Consul General to Toronto. The message is that Ontario and Canadian Newsvalue the relationship, but they must be clear-minded in responding if tariffs proceed. President Trump, when asked about the situation at the New York Stock Exchange, said he wants a deal. Ontario welcomes that. Leche said that fixing border security with more CBSA officers, technology, and enforcement can help avert a scenario of tariffs.

Critical Minerals and National Security Canadian News

Ontario has critical minerals and rare earths that the U.S. needs. Leche stressed that Ontario is the only jurisdiction in the Western Hemisphere that has all critical minerals the U.S. needs for national security and EV production. He said that 9 million American jobs depend on the Ontario economic relationship.

Alberta’s Approach to U.S. Tariffs and Border Security

Alberta is also responding to the tariff threats and border issues.

• The province announced a $29 million investment to bolster security at the Alberta-Montana border.
• The plan includes a 2-km Red Zone to make arrests near the border. Alberta’s Minister of Public Safety and Emergency Services, Mike Ellis, clarified that no one will be arbitrarily detained or arrested.
• It’s about alerting offenders involved in illegal guns, illicit drugs, and human trafficking that Alberta is watching.

Ellis stated that the focus is on illegal guns, narcotics, and human trafficking coming from the U.S. into Canadian News. Alberta had already planned such measures, and they may be accelerated to deploy officers by January. The timing lines up with the president-elect’s tariff threats, but Alberta had this preparedness in mind due to concerns identified in the minister’s mandate letter.

Cooperation with Montana and Law Enforcement Agencies

Premier Smith of Alberta spoke with the governor of Montana. It was a positive discussion focused on border security and shared concerns. Ellis spoke with CBSA and RCMP, and they welcomed Alberta’s support. Less than 1% of inspected goods at the border and 0% of trains are currently inspected. Alberta aims to collaborate with law enforcement for better border security.

Alberta’s Trade Philosophy and Shared Interests

Alberta will not impose restrictions on oil and gas going to the U.S. Ellis said the U.S. is a valued trading partner, neighbor, and friend. If president-elect Trump is concerned about fentanyl, Alberta understands that issue. But it’s a two-way street, and Alberta is also concerned about illegal activity crossing the border.

The focus remains on cooperation and collaboration with American partners, sharing a common goal of ensuring secure and beneficial trade.