Ontario Governor Ford insists that if tariffs are not lifted, he will cut off energy supplies to multiple states in the United States. The report stated that US Secretary of Commerce Howard Lutnick demanded that Ford abandon its countermeasures against the United States, but Ford refused. Ford emphasized that as long as US tariff measures remain in place, he will not change his stance.
The Ford Governor's Office stated that although the US government announced a one month suspension of tariffs on the automotive industry, Ontario will not suspend or adjust any countermeasures.
These measures include: terminating the US $100 million contract signed with Elon Musk's Starlink Internet Service Company, removing all American alcohol from Ontario liquor stores (LCBO), prohibiting American enterprises from participating in Ontario's government procurement projects worth billions of yuan, and "reviewing" existing contracts one by one to find cooperation with American companies that can be canceled.
In addition, Ford has threatened to impose a 25% export tax on electricity exported from Ontario to the United States and implement it as soon as possible. Ontario's electricity supplies 1.5 million households and businesses in New York, Michigan, and Minnesota.
Image source: CTV
Zero tariffs - we will not compromise
Ford stated on Wednesday afternoon that Ontario will never accept any tariffs on Canadian goods.
Ford said, "I just spoke with the Prime Minister and our position is aligned - zero tariffs, we won't give in. We won't give in. Let's go back to USMCA, CUSMA, or whatever you like to call NAFTA, let's keep pushing forward. But we won't give in, zero tariffs, that's it
He made these remarks after holding a cabinet meeting at the Ontario Parliament Building.
At the same time, the White House has confirmed that the US government will grant a one month tax exemption period to cars entering the United States under the USMCA agreement.
Image source: CTV
However, this temporary suspension measure is only temporary and has not lifted tariffs imposed on other sectors of the Canadian economy. The White House also confirmed that more retaliatory tariffs will take effect on April 2nd.
When asked about the tariff suspension in the automotive industry, Ford expressed skepticism and believed that it may just be Trump buying time for his next plan.
Ford said, "We all know that what the president said today may change tomorrow. We have seen this situation too many times, and the rules are always changing
He added that on the issue of tariffs, "either there is, or there isn't, it's that simple
Ford stated that he believes Canada's countermeasures have successfully caught the attention of Washington.
"I think the American people are our closest allies. They have expressed their dissatisfaction. They are depressed, CEOs are depressed, and the market has plummeted, which really attracted Trump's attention." Ford said, "I believe that the threat to electricity exports is not only causing concern domestically in the United States, but also having an impact globally, and this persistence is the key
US Secretary of Commerce: 'The final outcome may be a compromise'
Before the meeting began, Ford stated that he had a "good conversation" with US Secretary of Commerce Howard Lutnick last night and advised people to "wait and see" the further development of the trade war.
In an interview with ABC News, Ford stated that he believes Lutnick understands Canada's position in this trade war and the potential "chaos" it could bring.
Previously, Lutnick stated in an interview with Bloomberg that the United States may make concessions to some industries.
Ford told ABC News on Wednesday morning, 'Firstly, Secretary Lutnick is a very intelligent person.'. He understands the market and business. In the past few days, this tariff war has plunged the United States and Canada into chaos. The market plummeted by 3 trillion yuan. Although there has been a slight rebound now, what people need is certainty, and that's exactly what I told Minister Lutnick - don't attack your closest friends and allies
Image source: CTV
In a conversation with ABC News, Ford emphasized that the only thing Canada wants is a fair trade agreement and expressed Lutnick's understanding of this.
This is my core message about him, and he understands that. He is indeed a good person
Sources told CTV News Toronto that Ford's conversation with Lutnick was "tense and intense". Lutnick had requested that Ford abandon its countermeasures against the United States, but Ford refused, emphasizing that he would not change his stance as long as the US tariff measures remained in place.
Ford confirmed to reporters on Wednesday afternoon that the conversation was indeed "quite tense". He revealed that Lutnick requested him to reduce the intensity of countermeasures, but he refused.
In an interview with ABC, Ford also stated that in private, Republican politicians generally believe that this trade war is not beneficial to the economies of both countries.
He reiterated that he does not want to retaliate economically against the United States, but if necessary, he will do so.
Ford said, "Canadians love Americans, and they also love the United States. Unfortunately, all this is because of one person - not the American people, not elected officials, but President Trump. Although we do not want to do this, we have to fight back against our closest friends and allies."
Image source: CTV
The threat of energy export tax still exists
Ford did not provide further details regarding the imposition of tariffs on electricity exports to the United States, or even the complete cut-off of supply.
But he warned that Trump's further retaliatory tariffs would only worsen the situation.
Ford said, "If he does this, things will only escalate, and the ultimate victims are Americans and Canadians".
In an interview with Bloomberg on Wednesday, Lutnick said he believes that ultimately all parties may reach some kind of compromise.
Lutnick said, "In my opinion, the final outcome may be a compromise. Not all goods will be taxed, but there will also be no tariffs at all. I think Mexico and Canada are trying their best to reach an agreement, let's see how it ends in the end. Therefore, I believe the final outcome is likely to be a compromise
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