Canada Hits Back At US With $110 Billion Energy Retaliation: Trump Didn’t Expect This Much!

after Donald Trump's tariffs imposed at the beginning of March Canada's patience has run out in the first days of Canada's new Prime Minister's term the province of Ontario's 110 billion trade move against the United States is taking North America's trade friction to a new level I knew this midday the Canadian province of Ontario announced a 25% electricity searge to the US this we following the breaking news president Trump saying he is now doubling the tariffs on Canadian aluminum and steel for weeks now we've been faced with so much uncertainty coming from president Trump on Canada

Doug Ford the premier of Ontario says he's now imposing a 25% retaliatory tariff the Canadian province of Ontario has taken a major step that has the potential to shake not only its neighbors energy markets but the entire global economy by imposing a 25% tariff on electricity exports to the United States this additional cost of 110 billion United States dollars could have a profound impact not only on energy supplies but also on relations between Canada and the United States so why did Ontario impose a tax on electricity sold to the United States how could president Donald

Trump's retaliation affect the Canadian economy and most importantly how will Canada's new prime minister Mark Carney manage this crisis what is Canada aiming for with this shift in the energy sector these developments will resonate politically as well as economically between the United States and Canada under the leadership of Canada's new prime minister Mark Carney the country is on the verge of a fundamental transformation in its domestic and foreign policy here we take a step-by-step look behind the scenes of the North American Trade tensions how Trump's threats are being received in Canada and what role the

new prime minister Mark Carney will play in these tensions ready when you are earlier this week Ontario imposed a 25% sir charge on electricity exported to the United states which the government said could be increased if the United States further escalates trade tensions for weeks now we've been faced with so much uncertainty coming from president Trump each day brings new tariff threats now president Ontario Premier Doug Ford announced that Ontario is raising the price of electricity The Province supplies to 1.5 million homes in Minnesota New York and Michigan in retaliation for president Donald Trump's tariffs

on Canadian Goods I feel very sorry for the American people because the American people did not start this trade War there is only one person responsible and that is President Trump he also noted that the sirch charge would add an estimated 100 United States doll a month to the average bills of affected American taxpayers generating around 300,000 to 400,000 United States dollars in revenue for the province every day he announced that this additional Revenue would be used to reduce electricity bills for taxpayers in Ontario Canada's move means a 110 billion United States dollar annual burden

on United States electricity imports from Canada Ford also made an important statement about future relations the two strongest most resilient wealthiest and safest nations in the world he said I have met with the three governors and they understand the situation we are in we need to build on our strengths not on our weaknesses he said setting out his position on the negotiating process in addition the province of Ontario removed American alcohol from the Ontario Liquor Control Board shelves and banned United States companies from government procurement contracts in addition to the federal government's first retaliatory tariffs

on American goods worth 30 billion United States dollars the electricity search charge is being implemented through a directive from energy Minister Steven Lexi to the independent electricity system operator this directive requires any generator selling electricity to the United States to charge a sear charge called a tariff response charge the ieso will collect the money from this search charge on behalf of the government each month Ontario has indicated that it can increase or decrease the amount of the electricity search charge at any time in response to United States government actions this flexibility demonstrates the province's ability

to react quickly to the Dynamics of trade Wars in response United States states were quick to comment Minnesota says Ontario tariff will have minimal impact Minnesota receives only a small portion of its electricity from Ontario but Democratic governor Tim Walls sharply criticized Trump's actions that led to Ford's announcement saying that the first victims of Trump's trade War Minnesotan struggling to pay skyrocketing utility bills they cannot afford Trump's billionaire run economy we have to put an end to this madness Michigan is concerned about the reliability of its power grid Matt Helms and official with the Michigan

Public Service Commission said the impact on Michigan customers would likely be minor and that most of Michigan's electricity is generated by the state's utility companies or through long-term contracts of Greater concern to the commission is the reliability of the power grid because electricity flows between the United States and Canada as part of an interconnected system any action to limit or disrupt these flows would remove a layer of protection and make us all both Canadians and Americans more vulnerable to to grid scale disruptions Helms said in New York Governor Kathy huckle said she had ordered State

energy officials to conduct a review of how much the tariffs could increase electricity and other energy costs in the state these Federal tariffs were poorly designed from the outset crafted in secret without transparency or clear economic justification they have only served to destabilize our Capital markets and create uncertainty among New York families and businesses said hoel a Democrat Trump's reac reaction to Ontario's decision was harsh Trump opposed the sir charge calling Canada a tariff abuser he reiterated that the United States no longer needs Canada's resources and will no longer subsidize Canada because our tariffs are

reciprocal we will take them all back on April 2nd he said to address this threat Ford indicated that the amount of electricity generated by hydroelectric power plants could be reduced he also invited other provinces to use their energy resources especially Alberta which sends about 4 million barrels of oil a day to the United States a message to Premier Danielle Smith I think one day you may have to use this trump card and give approval for an export tax he said he went further saying you want to talk about a trump card this is an instant

game Cher Americans and I know Americans will lose their minds when gasoline prices go up 90 cents to one United States dollar a gallon it is going to get on the nerves so we need to at least put it in the shop window however Premier Smith firmly rejected this proposal Alberta will never accept such a ridiculous and self-destructive idea it is not an option I will not agree to do something that will cost hundreds of thousands of albertans and Canadians hundreds of thousands of jobs almost overnight that would be like putting an autop Parts export

tariff on Ontario and that is a bad idea Ontario's hike is driven not only by Rising energy demand but also by environmental factors and international trade policies in this process it is important to examine how Canada's trade and energy policies are shaped especially the approach of the new prime minister Mark Carney Carney a former governor of the Bank of Canada and the bank of England won the leadership race of the Liberal Party of Canada with nearly 86% of the vote the transfer of power from Justin Trudeau to Carney is expected to take place within days

and he is expected to call a election soon after Carney 59 takes the Reigns at a time when the White House is creating turmoil in the global economy and with the United States's trading partners with increasingly chaotic tariff announcements and trade policies Trump imposed a 25% tariff on most Canadian and Mexican Goods then promised a one Monon delay for those who comply with the North American Trade Agreement he then announced massive new tariffs on Canadian Lumber and dairy products United st's Commerce Secretary Howard lutnick signaled that he expected the 25% tariffs on steel and aluminum

Imports to resume on March 12th Trump has previously expressed his desire to use economic leverage to make Canada the 51st state these statements sparked massive patriotic outrage in Canada with consumers boycotting American products and governments turning their attention to seeking new trading partners Trudeau said Trump's threats to Canada's sovereignty must be taken seriously in in his victory speech Carney said America is not Canada and Canada will never be part of America in any shape or form we did not ask for this fight but Canadians are always ready when someone else drops the gloves so Americans

make no mistake in trade as in hockey Canada will win Carney pledged to maintain the government's retaliatory tariffs on United States Goods until the Americans show us respect and make credible credible commitments to free and fair trade all revenues from the tariffs will be used to protect workers he said he also pledged to make key Investments to make Canada's economy the strongest in the group of seven including creating new trade corridors with trusted partners and making the country an energy superpower throughout the leadership race Carney has presented himself as an experienced crisis manager having LED

major central banks at Key moments during the global financial crisis in Canada and in the United Kingdom during its turbulent exit from the European Union however carne is relatively inexperienced in the political Arena and currently does not hold a seat in Parliament Carney who resigned as chairman of Brookfield Asset Management limited and Bloomberg Incorporated to run for the leadership has pledged to find new markets for Canadian exports and reduce domestic trade barriers to that end he said he would reconsider the Liberals plans to raise the capital gains tax scrap the consumer carbon tax and use

the power of the federal balance sheet to invest in big projects He also said he would split the federal budget in two an operating budget which he promised to balance and a capital spending budget that would be allowed to devote tens of billions of dollars to productivity boosting infrastructure Investments emphasizing that this approach is bold and ambitious Carney stated that they will not hesitate to take more radical steps to increase economic competitiveness he said the following on the subject we can give ourselves far more than Donald Trump take this will not be business as usual

we are going to have to do things we never imagined before at speeds we did not think possible Canada has until October to go to the polls but the precarious situation in Parliament where the liberal party has less than 50% of the seats in the House of Commons means that the election could be held earlier Carney has to decide whether to drag the country to an election in the spring leaving it to an interim government for a few weeks when the trade War could intensify or to try to govern for a while longer with the

support of at least one opposition party Trudeau's resignation carne's nomination and Trump's threats have made the Liberals more competitive in opinion polls after trailing the conservatives by a wide margin for more than a year the conservatives have been running frequent attack ads against Carney for weeks conservative leader Pierre pev accused Carney of not being transparent about his promises and business interests and called on him to proactively disclose his financial Holdings to reveal potential conflicts of interest the conservatives also targeted Carney when he tried to downplay his role in brookfield's decision to move its headquarters to

New York last year in return Carney targeted peva referring to the conservative leader threat to OU Bank of Canada Governor Tiff mckam in 2022 he said pev would undermine the Bank of Canada in a period of enormous economic insecurity and he also criticized po 's approach to climate policy all in all Ontario's electricity hike is a big move that has the potential to affect not only relations between Canada and the United States but also Global energy markets the steps to be taken under Mark carne's leadership Mark a critical turning point for Canada's future how he

balances trade Wars energy policies and diplomatic strategies will be important not only for the two countries but also for the whole world do not forget to subscribe to our channel to closely follow the of these developments on the global economy thank you for watching us