Donald Trump has responded to Canada’s decision to impose a major tax increase on electricity exports to the U.S., calling it a “hostile act” and vowing economic retaliation. The tax hike, implemented by Canadian Premier Doug Ford, will directly impact 1.5 million American customers, primarily in northern states that rely on Canadian energy.
Trump accused Ford of using energy as a political weapon and warned that the U.S. would respond with “severe economic measures.” Though he did not specify the exact steps his administration would take, insiders suggest further tariffs on Canadian imports are under consideration. This latest trade dispute adds to the growing tensions between the two countries, following recent U.S. tariffs on Canadian goods and retaliatory measures from Canada.
Ford defended the tax increase, arguing that it was necessary to protect Canada’s energy sector from U.S. policies that have disrupted trade agreements. He also accused Trump of prioritizing American interests at Canada’s expense, stating that his government would not be intimidated by economic threats.
With both sides refusing to back down, the U.S.-Canada trade war continues to escalate, raising concerns about the long-term impact on consumers and businesses in both countries.
