Bank of Canada cuts interest rate, highlights risk of Trump’s tariffs

Bank of Canada cuts interest rate, highlights risk of Trump’s tariffs

TORONTO — The premier of Canada’s most populous province said Wednesday he will cut off energy to the United States if President-elect Donald Trump imposes sweeping tariffs on all Canadian products.

Trump has threatened to impose a 25% tax on all products entering the U.S. from Canada and Mexico unless they stem the flow of migrants and drugs.

“We’re going to put our list together, and I’m sure the other provinces will as well. But we will go to the full extent, depending on how far this goes. We will go to the extent of cutting off their energy,” Ontario Premier Doug Ford said after meeting with Canadian Prime Minister Justin Trudeau and other provincial premiers.

Ford said he didn’t want this to happen but wasn’t optimistic Canada could avoid tariffs.

“This fight is 100% coming on Jan. 20 or Jan. 21,” he said, referencing to the date of Trump’s inauguration.

“We will use every tool in our tool box to fight back. We can’t sit back and roll over. We just won’t as a country. And isn’t this a shame, our closest friends and allies.”

About 60% of U.S. crude oil imports are from Canada, and 85% of U.S. electricity imports as well.

It wasn’t immediately clear if Ford was talking about all Canadian provinces cutting off energy exports to the U.S. or just his province. But a spokeswoman for Ford, Grace Lee, said it was raised in the call between Trudeau and the provincial premiers.

“Premier Ford can only speak on behalf of Ontario, but its an area of provincial jurisdiction that we would certainly look at,” Lee said in an email.

Lee noted Ontario powered 1.5 million homes in the U.S. in 2023 and is a major exporter of electricity to Michigan, Minnesota and New York.

Trump’s transition team did not immediately respond to a request for comment on the threat.

Canada is also the largest foreign supplier of steel, aluminum and uranium to the U.S. and has 34 critical minerals and metals that the Pentagon is eager for and investing for national security.

“Canada, of course, will respond to unjustified tariffs,” Deputy Prime Minister Chrystia Freeland said after the meeting.

Freeland said a number of provincial premiers voiced support for a robust response to the tariffs and said that included critical minerals that are e

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