Ontario Premier Doug Ford Warns Canada Could Cut Electricity and Critical Minerals as Trade War Escalates

Ontario Premier Doug Ford has warned that Canada should be prepared to use its electricity supplies and critical minerals as economic leverage against the United States if the escalating trade dispute between Ottawa and Washington continues to worsen.

Speaking to The Associated Press on Monday, Ford said “everything is on the table,” including cutting electricity exports and restricting shipments of critical minerals to the United States.

His comments came after President Donald Trump escalated the dispute by threatening 50% tariffs on Canadian automobiles, auto parts and steel beginning next year. The announcement follows the collapse of last-ditch trade negotiations between the two countries.

The United States had already imposed 50% tariffs on about $20 billion worth of Canadian goods early Saturday. Prime Minister Mark Carney has said Canada will retaliate on a dollar-for-dollar basis beginning Sept. 8.

Ford, one of Canada's most prominent provincial leaders, said Trump was underestimating the willingness of Canadians to withstand economic pressure rather than accept what they see as unacceptable demands from Washington.

“We’re all in,” Ford said, describing the mood in Canada as one of readiness for an economic confrontation.

Electricity and minerals become bargaining chips

Ford specifically raised the possibility of restricting Ontario's exports of electricity and critical minerals to the United States.

Ontario supplies electricity to millions of homes and businesses in neighboring U.S. states, while the province is an important source of minerals and industrial materials used in American manufacturing and national security.

“I’ll cut them off,” Ford said when discussing critical minerals, adding that Ontario should be prepared to use its resources if the trade conflict intensifies.

The comments underline how rapidly the dispute has moved beyond conventional tariffs and into questions about strategic resources and economic security.

Ford also said Canada should consider using other major exports, including oil and potash, as potential leverage.

The escalation carries risks for both sides. Canada relies heavily on access to the much larger U.S. market, while American industries depend on Canadian energy, raw materials, electricity and components that are integrated into cross-border supply chains.

Auto industry at the centre of dispute

Ontario's auto industry is particularly exposed.

Vehicle manufacturers and suppliers operate across the Canada-U.S. border, with parts often crossing between the two countries multiple times before a vehicle is completed. Major manufacturers including Ford, General Motors and Stellantis have significant operations in Ontario.

A 50% tariff on Canadian vehicles and auto parts could therefore have consequences well beyond Canadian manufacturers, potentially increasing costs across North American production networks.

Ford accused Trump of seeking to pull Canadian manufacturing and investment into the United States rather than simply negotiating a more favorable trade agreement.

“He wants to bleed out every single sector and bring them down to the U.S.,” Ford said.

U.S. Trade Representative Jamieson Greer has argued that Canada's auto industry was itself built in part through earlier trade arrangements with the United States.

Ford rejected the idea that Canada should simply accept U.S. pressure.

Fight over Canadian sovereignty

Another major issue in the failed negotiations was Canada's ability to pursue trade relationships with other countries.

Ford said Washington had sought language that would have restricted Canada's ability to negotiate trade agreements with other nations without U.S. approval.

Carney has characterized such demands as unacceptable, arguing that they raise fundamental questions about Canadian sovereignty.

For Ford, the issue goes beyond tariffs.

“Who does he think he is?” Ford said of Trump.

The dispute has also revived Ford's previous criticism of Trump's trade policies. Ford pointed to former President Ronald Reagan's opposition to protectionist trade measures, arguing that Reagan would have been deeply critical of the current approach.

“He should maybe take that picture off the wall,” Ford said, referring to a portrait of Reagan near Trump's desk.

Canada still wants negotiations

Despite his increasingly confrontational language, Ford said Canada should not permanently abandon negotiations with Washington.

“I never believe in walking away from the table,” he said. “Continue negotiating and see where we go.”

That leaves Canada facing a difficult balance: retaliating strongly enough to demonstrate that U.S. tariffs carry consequences while avoiding measures that inflict greater economic damage on Canadian consumers and businesses.

The dispute is already testing one of the world's most deeply integrated economic relationships.

For Ontario, where manufacturing, energy and cross-border trade are central to the economy, the stakes are particularly high.

As the tariff battle expands, electricity, minerals, automobiles and other strategic exports are increasingly becoming tools in a confrontation that neither Ottawa nor Washington can easily contain.