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Canada Threatens U.S. Power Cut-over Tariffs

by Tim McBride
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Canada is warning that it may cut off power imports to the United States in response to President Donald Trump’s decision to impose steel and aluminum tariffs on Canadian exports. The warning came as tensions between the two countries escalate over the tariffs, which went into effect on June 1.

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The statement was made by Canadian Natural Resources Minister Jim Carr, who said that Ottawa is considering “all options” to protect its aluminum industry, including cutting off virtually all electricity exports to the U.S. The move is seen as a retaliatory measure in response to Trump’s tariffs, which came into effect on June 1.

The tariffs, which Trump claims are necessary to protect national security, have been met with widespread criticism from Canadian Prime Minister Justin Trudeau and other world leaders. Canada is one of the largest suppliers of aluminum to the U.S., and the tariffs are expected to have a significant impact on the industry.

Carr said that Canada has the ability to “identify situations where there are vulnerabilities in the U.S. grid” and use that information to justify the power cutoff. He also noted that Canada is a significant producer of renewable energy and could use that energy to meet its own needs if necessary.

The warning comes as the two countries are already engaged in a trade dispute over the tariffs. Canada has threatened to impose retaliatory tariffs on U.S. goods, including some $12.8 billion worth of American products. Trump has also threatened to increase the tariffs to 25% on Canadian aluminum.

It is unclear at this point whether the Canadian government will actually follow through on the threat to cut off power imports. However, the warning is seen as a serious escalation in the trade dispute between the two countries.

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