Ontario to ban US-made alcohol if Trump tariffs are implemented

TORONTO (AP) Canada's most populous province could ban U.S.-made alcohol in addition to restricting electricity exports to Michigan, New York and Minnesota if U.S. President-elect Donald Trump imposes tariffs. drastic customs on all Canadian products, a senior official said Thursday.

Ontario Premier Doug Ford's government official says he is considering blocking the Ontario Liquor Corporation from buying alcohol made in the United States.

Ontario is also considering restricting exports of critical minerals needed for electric vehicle batteries and blocking U.S.-based companies from participating in the government's procurement process, the official said on condition of anonymity because the official was not authorized to speak publicly about the potential measures.

Ford confirmed Wednesday evening that Ontario is considering restricting electricity exports to the tri-state region. He reiterated this on Thursday and said it would make electricity unaffordable for Americans. Ford spoke with Michigan Gov. Gretchen Whitmer on Thursday, his office said.

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 United States. If you attack Ontario, if you attack the livelihoods of Ontarians and Canadians, we will use every tool at our disposal to defend Ontarians and Canadians. Let's hope we never get to that point.

Trump has threatened to impose a 25% tax on all goods entering the United States from Canada and Mexico unless they stem the flow of migrants and drugs.

Ontario powered 1.5 million homes in the United States in 2023.

It doesn't matter if he does that. That's great, Trump told CNBC when asked about Ford's remarks at the New York Stock Exchange.

The United States is subsidizing Canada and we shouldn't have to do that, Trump said. And we have a great relationship. I have so many friends in Canada, but we shouldn't have to subsidize a country.

The CNBC reporter said Trump told him off-camera that they hoped they could work out a deal with Canada.

President Trump told a reporter that he hoped the United States and Canada could find a solution. I agree, Ford posted later on X.

Ford said the good news is the path to a deal is not complicated, emphasizing that Canadian Prime Minister Justin Trudeau must protect the border and spend more on the military to meet NATO's spending target 2% of GDP.

The premier of Canada's oil-rich province of Alberta has ruled out suspending oil exports.

Under no circumstances will Alberta agree to suspend its oil and gas exports, Alberta Premier Danielle Smith said. Instead, we are taking a diplomatic approach and meeting with our allies in the United States. We advocate for Alberta oil and gas to be part of the solution to energy affordability and security.

Canada supplies more oil to the United States than any other country, almost 4.5 million barrels per day. About 60% of U.S. crude oil imports come from Canada, and one-fifth of the crude refined in the United States comes from Canada.

If you impose a 25 per cent tariff on oil from Alberta, it will increase each gallon of gasoline by a dollar, Ford said.

About 85% of U.S. electricity imports also come from Canada. Canada also has 34 critical minerals and metals that the Pentagon covets.

Nearly 3.6 billion Canadian dollars ($2.7 billion) worth of goods and services cross the border every day. Canada is the primary export destination for 36 U.S. states.

Canada has promised more spending on border security to address Trump's border concerns. Ford said his province was ready to support Canada's border agency and police with hundreds of new officers on the ground, as well as planes, helicopters, boats and drones.

Public Safety Minister Dominic LeBlanc, who along with Trudeau recently dined with Trump at Mar-a-Lago, his private club in Florida, said they plan to share details of these border projects with the new Trump administration soon .

The Alberta government is creating a new sheriff's patrol unit that will include about 50 sheriffs, 10 cold weather surveillance drones and four drug detection dogs.

At the Mar-a-Lago dinner, Kristen Hillman, Canada's ambassador to the United States, said Washington's trade deficit with Canada was also discussed. Hillman said the U.S. had a $75 billion trade deficit with Canada last year, but pointed out that a third of what Canada sells to the U.S. is energy exports and prices are high.

Trudeau said this week that tariffs imposed by the United States would be absolutely devastating to the Canadian economy, but would also cause real hardship for Americans.

Canadian officials said it was unfair to lump Canada in with Mexico. LeBlanc said illegal migration from Canada to the United States represents only 0.6% of the total, and fentanyl from Canada represents 0.2% of total U.S. seizures.

Quebec Premier Françoise Legault said Trump told her in Paris last week that he didn't want to see any more illegal immigration from Canada. Legault highlighted Trudeau's plan to strengthen border security.

I prefer that to starting a war and stopping sending energy to the United States, Legault said.

Newfoundland Premier Andrew Furey said he had a call with New England governors this week and said there was significant concern on both sides of the border.

We hope this is just bluster, Furey said. We prepare as if this were not the case. There will be no winners in a trade war.

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