POLIBIZ: Canada’s Ontario Premier levels up the trade war with the USA into an overall economic war

Mar 4, 2025

Canada’s Ontario Premier levels up the trade war with the USA into an overall economic war

The Premier of Ontario Province which shares a long border with USA Doug Ford just canceled Elon Musk’s Starlink contract and banned all U.S. companies from government contracts in response to Trump’s imposing new 25% tariffs on Canadian goods. These are additional retaliations from Canada after the Prime Minister announced to implement 25% tariffs against $155 billion of American products.

Canada's Ontario Premier Doug Ford

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U.S. President Donald Trump's new 25% tariffs on imports from Mexico and Canada took effect on Tuesday midnight 4th March 2025, along with a doubling of duties on Chinese goods to 20%. 

American officials have described the happening as a “drug war” instead of a “trade war”. Trump declared the reason for imposing such tariffs was that the top three U.S. trading partners had failed to do enough to stem the flow of fentanyl and its precursor chemicals into the USA, with Canada and Mexico as the transit gateways and China as the source.

The Premier also threatened to add a 25% surcharge to the electricity they export to 3 American states including New York, Michigan and Minnesota. 

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