Canada provinces have followed the federal government in responding to US President Donald Trump’s tariffs, with Ontario taking the lead. Ontario Governor Doug Ford on Tuesday declared tough countermeasures that could cost US businesses tens of billions of dollars in business and hundreds of billions of dollars in lost opportunities. He also threatened to cut off electricity supply to US states, leaving millions in the dark. Ford also canceled a government contract with Elon Musk’s Starlink.

Ford’s move is in addition to the 25 percent tariffs in two phases imposed by Prime Minister Justin Trudeau on US products valued at C$150 billion. Canada has achieved a bipartisan agreement against Trump’s trade war and territorial expansion. Trump has already threatened to annex Canada and make it the 51st US state.

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With a month-long reprieve about to run out, Trump’s tariffs of 25 percent on Mexico and Canada began on Tuesday. Another round of tariffs in the form of steel and aluminum, which will be effective on March 12, will target Canada most because it is the largest exporter of steel and aluminum to the US.

Ontario Takes Bold Action Against US Businesses

Within the first reaction to Trump’s tariffs, Ford suspended a C$100 million government contract with Musk’s Starlink. Ford also issued a ban on American companies from accessing government procurement deals worth C$30 billion yearly and C$200 billion infrastructure projects. Further, Ontario prohibited the sale of US alcoholic products in the province.

These actions are going to cost American businesses substantial losses, shutting them out from tens of billions of dollars’ worth of Canadian business and eliminating hundreds of billions of dollars in potential opportunities for business. In announcing the moves, Ford decried Trump’s style, stating,

“This is not the outcome anyone wanted. We could have poured our efforts into making Canada and the U.S. the two richest, most successful, safest, most secure two countries on the planet. Unfortunately, one man —President Trump— has chosen chaos instead.” Regrettably, one individual —President Trump— has opted for chaos rather.

The other provinces have followed suit in retaliation. Nova Scotia’s alcohol distributor has also made the declaration that it will cease selling US products, mimicking Ontario.

Ontario Threatens to Cut Electricity Supply to US

One of the most extensive threats was when Ford said he would reduce Ontario’s electricity supply to US states in the event of tariffs persisting. Presently, Ontario supplies electricity to approximately 1.5 million households in Michigan, Minnesota, and New York. Ford added that he would initially impose a 25 percent tariff on the electricity supplied to these US states, and in the event the tariffs continued, he would slash the supply entirely.

The surcharge on power might be a big monetary pinch for American consumers. The extra 25 percent surcharge added to Trump’s 25 percent tariffs might translate into a 50 percent rise in the cost of electricity supplied by Ontario.

US Commerce Secretary Tries to Calm Fires

After Ford’s statement, US Commerce Secretary Howard Lutnick called for a talk, which was termed as “tough” in reports.

As Lutnick pleaded with Ford to reconsider, saying that such words from Canadian leaders—e.g., Trudeau describing the tariffs as “dumb”—were taken as a personal attack against Trump in America, Ford insisted. Ford declared that he would not retreat and was willing to escalate retaliatory action if required, the Globe and Mail reports.

With tensions between the US and Canada escalating, everyone is waiting to see how this trade war will play out in the next few weeks.