Ontario premier threatens electricity, mineral cuts in trade fight

Ontario Premier Doug Ford said Monday that Ronald Reagan would be “throwing up” over President Donald Trump’s trade policies and threatened to cut off electricity and critical minerals to the United States as the trade dispute escalates.

“He underestimates Canada. We’re all in,” Ford told The Associated Press. “Up here, we’re at a fever pitch, everyone’s in for an economic war. They know they’re going to have to sacrifice.”

Ford said Trump had “declared war, economic war against his closest friend and ally.” He invoked Reagan, whose opposition to tariffs Ford had previously featured in a U.S. television advertising campaign. Trump keeps a portrait of Reagan near his desk, Ford noted.

“He’d be throwing up on him from the picture if he knew what was going on, spinning around in his grave right now,” Ford said. “Ronald Reagan would be disgusted with President Trump.”

Ford’s comments came after Prime Minister Mark Carney walked away from trade negotiations late Friday, saying Washington demanded too much in exchange for tariff relief. The United States imposed 50% tariffs Saturday on about $20 billion worth of Canadian goods. Carney announced dollar-for-dollar retaliation beginning Sept. 8. Trump said Monday that new 50% tariffs on Canadian automobiles, auto parts and steel would begin next year.

Ford said “everything is on the table” if the dispute worsens, including cutting off electricity and critical minerals from Ontario. He also called for Canada to consider using oil and potash as leverage.

“I’ll cut them off,” Ford said of critical minerals. “You won’t get a grain of sand out of Ontario.”

Critical minerals are increasingly important to U.S. national security. The Pentagon has sought more secure supplies of minerals used in military aircraft, missiles, munitions and electronics as Washington tries to reduce reliance on China. Ford specifically cited high-grade nickel shipped to the United States and uranium refined in Ontario.

“What would they do without the high-grade nickel that we ship down to the U.S.?” Ford said.

Ford said Ontario could raise electricity prices or stop sending power south. The province powers 1.5 million U.S. homes and businesses. “Everything’s on the table. I’ll do whatever it takes.” If Trump continues trying to dismantle Canadian manufacturing, Ford said, “he better have a pack of batteries.”

Ford has used electricity as leverage before. During an earlier phase of the dispute, Ontario imposed a 25% surcharge on electricity exported to Michigan, Minnesota and New York. Trump responded by threatening to double tariffs on Canadian steel and aluminum before both sides backed away.

The auto sector is especially exposed. Ontario is the center of Canada’s vehicle manufacturing industry. Plants and suppliers in Ontario are tightly integrated with factories in Michigan and other U.S. states, with parts routinely crossing the border multiple times during production. Automakers including Ford, General Motors and Stellantis operate major assembly plants in Ontario. Trump’s new threat of a 50% tariff on Canadian vehicles and parts puts that sector directly at the center of the dispute.

U.S. Trade Representative Jamieson Greer said Monday that “the only reason Canada has auto production in the first place” was because of the 1960s Auto Pact, under which Canada used access to its market to encourage vehicle production north of the border.

“If he thinks the Canadian people are going to roll over and just continue buying American-made vehicles, it’s not going to happen,” Ford said.

Ford also disclosed that he had opposed the preliminary agreement Carney was considering before Canada walked away. He said he was unwilling to restore American liquor to Ontario store shelves as part of an agreement and had been prepared to publicly break with the proposed deal. “I wasn’t going to put the booze back on the shelves,” Ford said.

Ford said he understood Washington had sought language late in the negotiations that would have restricted Canada’s ability to negotiate trade agreements with other countries without U.S. approval. Carney has called that demand unacceptable and a question of Canadian sovereignty.

“Who does he think he is?” Ford said of Trump. “You gotta be kidding.”

Ford’s Reagan comments revived an earlier clash. Last year, Ontario paid for U.S. television advertisements featuring excerpts from a 1987 Reagan address warning that tariffs can provoke retaliation and trade wars. Trump accused Ontario of misrepresenting Reagan and abruptly ended trade negotiations. Ford later agreed to pause the campaign so talks could resume.

Yet despite the hostile rhetoric, Ford said Canada should remain willing to negotiate. “I never believe in walking away from the table,” he said. “Continue negotiating and see where we go.”

For GM stock page and STLA stock page, the AlphaScala scores reflect the sector exposure. GM holds a 39/100 score (Mixed) and Stellantis a 46/100 (Mixed), both in the Consumer Discretionary and Consumer Cyclical sectors respectively. The escalating trade dispute adds a layer of uncertainty to their North American production networks.

The next concrete marker is the Sept. 8 retaliation date from Canada, and whether Trump follows through on the 50% auto tariffs next year. A resumption of negotiations or a cooling of rhetoric would reduce the risk of supply chain disruption. Ford’s electricity threat, if executed, would directly affect power grids in Michigan, Minnesota and New York.

Associated Press writer Seung Min Kim contributed from Washington.