The US Canada tariffs dispute is widening beyond customs duties as Ontario’s premier warns that Canada could use electricity and critical minerals as leverage. The escalation is also putting the deeply integrated North American auto supply chain back at the centre of the trade argument.
The Associated Press reported that the United States had imposed 50 percent tariffs on about $20 billion of Canadian products. Canada was expected to retaliate on September 8, while President Donald Trump also threatened an additional 50 percent charge on Canadian vehicles, auto parts and steel beginning next year.
Ontario Premier Doug Ford warned that Canada could cut electricity and critical-mineral supplies if the dispute continued. The AP report said Canadian officials were concerned that the US demands could damage the auto industry, whose factories and parts networks cross the border repeatedly before a vehicle is completed.
Prime Minister Mark Carney said in an August 22 speech that Canada would match US tariffs dollar for dollar. He identified steel, dairy, appliances, agricultural equipment, pulp and paper and electronics among the sectors covered by the planned measures. He said the measures would take effect on the Tuesday after Labour Day, with details to follow.
Energy dependence adds another layer to the argument. In the same speech, Carney said Canada supplies 99 percent of US natural-gas imports, 85 percent of electricity imports and 60 percent of crude-oil imports. He also described Canada as the largest customer for US cars. These are Canadian government figures presented in a political speech, while the AP report provides the wider account of the threatened and announced measures.
For people following US Canada tariffs, the immediate risk is not limited to a higher price at the border. Companies may face uncertainty over parts, metals, energy and delivery routes, particularly in the auto sector. The next key milestones are the announced Canadian response after Labour Day and whether the threatened vehicle, parts and steel measures become formal policy.
