Premier Doug Ford’s office says he will not be pausing or changing any tariff countermeasures in response to a one-month tariff delay for the auto industry.
Those measures include ripping up a $100 million deal with Elon Musk’s Starlink internet service, removing U.S. alcohol from LCBO shelves, blocking U.S. companies from participating in billions of dollars-worth of provincial procurement, and going through existing contracts “with a fine-tooth comb” to see what other deals with U.S. companies can be cancelled.
Ford has also threatened to slap a 25 per cent export tax on the electricity that Ontario sends to three U.S. states as soon as possible. That electricity powers 1.5 million homes and businesses in New York, Michigan and Minnesota.
‘Zero tariffs – we’re not gonna budge’
Ford said Wednesday afternoon the province is unwilling to accept any tariffs on Canadian-made goods.
“I spoke to the Prime Minister earlier. We’re on the same page, zero tariffs, and we are not going to budge,” Ford said. “We aren’t going to buckle down. Let’s move forward to the USMCA deal, or CUSMA deal, or NAFTA, whatever you want to call it, and let’s start moving forward. But we will not budge. Zero tariffs. And that’s it.”
He made the comment following a cabinet meeting at Queen’s Park.
At about the same time, the White House confirmed that the U.S. government will give a one-month exemption on any autos coming into the country under the USMCA agreement negotiated by Trump in his first term.
However the relief is temporary and does nothing to remove the tariffs placed on the rest of the Canadian economy. The White House also confirmed that further retaliatory tariffs will go into effect on April 2.
Asked about the pause for the auto industry, Ford expressed skepticism, saying it could just be time for Trump to plan his next move.
“As all we all know, what the President says today may change tomorrow. We’ve seen this pattern, the goal post change constantly,” Ford said.
He added that “there’s no such thing as half pregnant” when it comes to having tariffs or not.
Ford said he believes that talk about the countermeasures has been effective at getting Washington’s attention.
“I think the American people are closest allies. They’re voicing their opinion. They’re frustrated, the CEOs, the market tanked. That’s what really caught his (Trump’s) attention,” Ford said. “I think the electricity (threat) definitely got more of the world’s attention, not just down there, but just being persistent.”
‘Somewhere in the middle’ the likely outcome: Lutnick
On his way into the meeting, Ford said he had a “good conversation” with U.S. Commerce Secretary Howard Lutnick last night and that people should “stay tuned” for further developments in the trade war.
In an interview with ABC News, Ford said he feels Lutnick understands Canada’s position on the unfolding trade war between the two countries and the “chaos” it could bring.
That came after Lutnik told Bloomberg that there could be carve-outs for some industries.
“First of all, Secretary Lutnick is a super bright individual. He understands markets, he understands business,” Ford told ABC News Wednesday morning. “And it (the tariffs) turned the U.S. and Canada into mass chaos over the last couple days. You know, the market tanked $3 trillion. I know it’s coming back up a little bit, but they want certainty, and that’s all I was telling to the secretary. You know, don’t attack your closest friend and ally.”
Ford said that all Canada wants is a fair trade agreement and added that Lutnick understands.
“That’s what my message to him was, and he understands. He’s actually, he’s a good man.”
Sources told CTV News Toronto Tuesday that Ford and Lutnick had a “tough and aggressive” conversation in which Lutnick asked the premier to back off his threats about retaliatory measures.
Ford refused, as long as the U.S. measures are in place, but emphasized it’s not what he wants to do.
Ford told reporters Wednesday afternoon that it would be “pretty accurate” to characterize the conversation as tense. He confirmed that Lutnick asked him to tone down his talk about countermeasures and he refused.
In his interview with ABC, Ford also said that behind closed doors, Republican politicians agree that the trade war makes no sense for the economy in either country.
He reiterated that he has little desire to hit back at the U.S. economically, but will do so if need be.
“Canadians love Americans and they love the U.S.,” Ford said. “It’s unfortunate one person – it’s not the people of America, it’s not the elected officials – it’s one person that’s caused this this issue, and that was President Trump. And you know, we have to retaliate as much as we don’t want to, to our closest friends and allies.”
Ford did not offer further specifics on his threat to impose export tariffs, or even altogether cut off electricity that Ontario sends down south to power 1.5 million U.S. homes.
He said that retaliatory tariffs threatened by Trump would only worsen the situation.
“If he does that, it just goes back and forth, and it just hurts Americans and Canadians,” Ford said.
In a separate interview Wednesday with Bloomberg, Lutnick said he thinks a compromise of some sort may emerge eventually.
“My thinking is, it’s going to be somewhere in the middle,” Lutnick said. “So not 100 per cent all products, and not none. Somewhere in the middle because I think Mexico and Canada are trying their best and let’s see where we end up. So I do think somewhere in the middle is a likely outcome.”
-With files from CTV Toronto’s Siobhan Morris
