Ontario’s abrupt decision to strip U.S. liquor from store shelves, cancel a multi-million-dollar satellite deal, and threaten a 25% tax on electricity exports has jolted cross-border relations in the immediate aftermath of President Donald Trump’s 25% tariffs on Canadian goods.
The province, led by Premier Doug Ford, has wasted no time ramping up retaliatory measures. The most public display of Ontario’s anger appeared in Liquor Control Board of Ontario stores, which began yanking iconic American brands from Tennessee whiskey to California wine.
“We need to make sure America feels the pain. Stop buying U.S. goods,” Ford declared, adding that he was fully prepared to remove all American liquor from LCBO shelves until the trade dispute is resolved. Workers at more than 680 stores and almost 400 rural agency shops were seen boxing up well-known labels like Jack Daniel’s on Tuesday afternoon.
Ford also announced that Ontario is ripping up its $100-million satellite internet contract with Elon Musk’s Starlink—a unit of SpaceX, which is not publicly traded, but closely linked to Tesla. Musk, who spent part of his adolescence in Ontario, drew Ford’s ire for remaining influential in the White House’s trade agenda.
“He should be embarrassed to attack the people that took care of him,” Ford said bluntly.
Commerce Secretary Howard Lutnick soon called from Washington, urging Ford to soften his approach. According to government sources, the exchange turned “tense,” with the premier refusing to back down.
Ford also targeted the one-and-a-half million American homes in New York, Michigan, and Minnesota that rely on Ontario’s electricity. He pledged an immediate 25% surcharge on exports if President Trump pursues further tariffs.
“We will not hesitate to shut off their power as well,” he warned. Ontario would, he added, redirect energy from local reactors to province-based manufacturers, and it stands ready to stockpile nickel—about half of which normally flows to American firms, including the US Department of Defense.
The premier also announced that US-based companies would be banned from government procurement in Ontario, slamming the door on billions of dollars in contracts. For some, the impact is reminiscent of the beginnings of a trade war, albeit on a localized scale.
Nova Scotia soon followed suit, pulling US liquor from its own shelves and doubling tolls on American commercial vehicles entering the province. Premier Tim Houston dismissed concerns about inflaming tensions.
“Some people need to touch the hot stove,” he remarked.
These moves dovetail with the federal government’s stance. Prime Minister Justin Trudeau earlier proposed 25% retaliatory tariffs on $155 billion worth of US goods to protest Washington’s claims about Canadian fentanyl imports.
He similarly vowed to protect Canadian businesses from hostile foreign takeovers, wielding federal legislation to safeguard domestic interests during this period of economic uncertainty.
“The coming days and weeks will be hard. Businesses and families will feel the pain of this needless fight,” Ford acknowledged.
According to analysts, auto manufacturers such as General Motors face looming supply chain disruptions that may force them to idle plants within days. Ford insisted that if Trump doubles down, he can expect further retaliation, especially in the energy and critical-minerals sectors.
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