Trump’s tariffs on Canada could cost 1.5 million Americans electricity

It’s a little known fact that we Americans get much of our electricity from Canada. Unfortunately, our friendly neighbors to the north are currently considering cutting off the electricity flow if a certain future president goes through with his plan to impose heavy tariffs on their country.

The not-so-friendly proposal was floated this week by Doug Ford, the premier of Ontario, Canada’s second-largest province. Ford, who disclosed the information Wednesday during a call with Michigan Gov. Gretchen Whitmer, said he would limit electricity exports to Michigan, New York and Minnesota if Donald Trump followed through on his threat to impose tariffs on Canada.

According to the Associated Press: “It’s a last resort,” Ford said. “I don’t think President-elect Trump wants that to happen.” We are sending a message to the US. If you come and attack Ontario, attack the livelihoods of Ontarians and Canadians, we will use every tool in our toolbox to protect Ontarians and Canadians. Let’s hope it never comes to that.”

Ford also said it was considering restricting exports of certain minerals vital to the production of batteries for electric cars. Logically, both of these things could have a negative impact on US EV makers, which would be particularly bad for Trump’s political ally, Tesla CEO Elon Musk. Ford also considered restricting Canadian alcohol exports to the United States

Ann analysis from the Electric Information Administration notes that the U.S. and Canada have a deeply intertwined energy system in which physical cables deliver power to many communities on both sides of the national border. Historically, Canada has exported far more electricity to the US than it has imported, although that dynamic has changed somewhat in recent years. In 2023 Canadian electricity sales to the U.S. totaled about $3.2 billion. Last year, Ontario supplied electricity to about 1.5 million American households, notes the Associated Press.

Before the election, many warned economists that if Trump goes through with his plan to impose large tariffs on countries around the world, it will have a huge, potentially catastrophic impact on Americans’ pocketbooks. Defenders of Trump’s proposal mostly characterized it as “negotiation” strategy which is designed to elicit political and economic concessions from the countries it targets. “I think the president is going to use them as a bargaining chip — I think it’s important for everybody to keep that in mind,” said former National Economic Council director Larry Lindsay, in a recent conversation with Fox News. “How the deal ultimately pans out will ultimately determine whether the strategy has been successful,” he said.

I’m not sure how good a “negotiation” tactic it is to openly admit that Trump has no intention of following through on his threat, but I guess we’ll have to wait and see if the next president can – like his the book famously said it— make a deal.