Scandalous Ontario Premier Doug Ford
Doug Ford’s threat to cut off energy supplies to the U.S. is Low IQ: high-risk, low-reward strategy.
Ford doubles down on threat to cut off energy to U.S. amid spectre of trade war
U.S. tariffs on Canadian goods could come Tuesday
Newly re-elected Premier Doug Ford doubled down Monday on his threat to cut off electricity flowing from Ontario to several American states if the U.S. moves ahead with tariffs.
“If they want to try to annihilate Ontario, I will do anything — including cutting off their energy — with a smile on my face,” Ford said during his first news conference since winning a third majority last week. Ontario is a major electricity exporter to New York, Michigan and Minnesota.
“They need to feel the pain. They want to come at us? We’ve got to go back twice as hard,” Ford continued.
The comments came on the eve of when U.S. President Donald Trump looked set to impose 25 per cent tariffs on Canadian goods, and 10 per cent on energy, though there is still uncertainty about the magnitude and scope the tariffs might take.
The import levies could potentially devastate several key Ontario industries like auto manufacturing and steel production, as well as drive up retail prices and fuel more inflation. You can learn more about the supposedly impending tariffs here.
“We don’t know what’s coming tomorrow. I’m not even sure President Trump knows what’s coming tomorrow. We need to be prepared for everything and anything,” Ford said.
He added his government is also prepared to implement a surcharge on every megawatt of energy states purchase from Ontario and “rip up” a $100-million deal with Elon Musk’s Starlink internet company. The LCBO has already been directed to remove all American booze from its shelves if Trump moves ahead with his threats.
He also urged consumers, retailers and municipalities to source goods from Ontario, and from elsewhere in Canada if they can’t be found in the province.
Ford said he is “asking politely” before he implements legislation that could require retailers to highlight Canadian-made products on their shelves.
Ford was mum on whether Ontario would apply any retaliatory tariffs at the provincial level, but Ford again repeated his support for the federal government to go “dollar for dollar” in its response.
So, just how potent is Doug Ford’s energy threat?
How effect is Ontario Premier Doug Ford’s threat to cut off energy to U.S. amid spectre of trade war?
Ontario Premier Doug Ford’s threat to cut off energy supplies to the United States amid the specter of a trade war is a dramatic and high-stakes move, but its effectiveness is highly questionable and could have significant unintended consequences. Here’s an analysis of the potential impact and implications of such a threat:
1. Context of the Threat
- Energy Interdependence: Ontario and the U.S. share a highly integrated energy market. Ontario exports electricity to several U.S. states, particularly in the Northeast, while also relying on the U.S. for certain energy resources and infrastructure.
- Trade War Dynamics: If such a threat were made in the context of a broader trade dispute (e.g., tariffs, Buy American policies, or other protectionist measures), it would likely escalate tensions rather than resolve them.
2. Effectiveness of the Threat
- Short-Term Leverage: Cutting off energy supplies could cause immediate disruptions in U.S. states that rely on Ontario’s electricity, particularly during peak demand periods. This might pressure the U.S. to reconsider certain trade policies.
- Long-Term Consequences: The U.S. could respond by seeking alternative energy sources or accelerating investments in domestic energy infrastructure, reducing its reliance on Ontario in the long run. This would weaken Ontario’s position as a reliable energy partner.
- Economic Impact on Ontario: Ontario’s energy sector and economy could suffer significantly. Energy exports to the U.S. generate revenue and support jobs in the province. Cutting off these exports would hurt Ontario’s own economy.
3. Diplomatic and Political Implications
- Escalation of Tensions: Such a threat would likely escalate tensions between Canada and the U.S., making it harder to negotiate mutually beneficial solutions to trade disputes.
- Damage to Bilateral Relations: The U.S. and Canada have a long history of cooperation on energy and trade. A move like this could damage that relationship and undermine trust.
- Political Fallout: Domestically, Ford’s threat could be seen as reckless or overly confrontational, especially if it leads to economic harm for Ontario residents or businesses.
4. Legal and Regulatory Challenges
- Contracts and Agreements: Many energy exports are governed by long-term contracts and regulatory agreements. Unilaterally cutting off energy supplies could lead to legal disputes and penalties.
- Cross-Border Coordination: Energy markets are highly regulated and require coordination between multiple agencies and jurisdictions. A sudden cutoff could create regulatory chaos.
5. Alternative Strategies
Rather than resorting to threats, more effective strategies for Ontario and Canada in a trade dispute with the U.S. might include:
- Diplomatic Engagement: Working through diplomatic channels to address trade concerns and negotiate compromises.
- Diversification of Markets: Reducing reliance on the U.S. by expanding trade and energy partnerships with other countries.
- Economic Retaliation: Imposing targeted tariffs or trade measures that minimize harm to Canadian industries while maximizing pressure on the U.S.
Conclusion
Doug Ford’s threat to cut off energy supplies to the U.S. is a high-risk, low-reward strategy. While it might create short-term leverage, the long-term consequences for Ontario’s economy, energy sector, and Canada-U.S. relations would likely outweigh any potential benefits. A more measured and diplomatic approach would be far more effective in resolving trade disputes and protecting Ontario’s interests.
Yet another “BS Nothing Burger Rethoric”?
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