Ford Threatens U.S. Power Cutoff Over 50% Tariffs

Ford Threatens U.S. Power Cutoff Over 50% Tariffs

The News

Canada is threatening to hit back at the United States with electricity, after President Donald Trump announced Monday that a 50% tariff on Canadian automobiles, auto parts and steel will take effect Jan. 1, 2027.

Ontario Premier Doug Ford threatened to cut off power flowing to American homes, saying of the fight: "We're all in."

Prime Minister Mark Carney went further, saying the U.S. wants to destroy Canadian firms — while leaving the door open to more talks.

Timeline

Aug. 23-24

U.S.-Canada trade negotiations collapse, and stock futures slip as the two countries appear headed for a trade war.

Monday, Aug. 24

Trump announces the 50% tariff on Canadian automobiles, auto parts and steel will begin Jan. 1, 2027.

Monday, Aug. 24

Ford threatens to cut off electricity to U.S. homes amid the tariff push, according to Cleveland.com, PennLive and Citizen Free Press.

Monday, Aug. 24

Carney tells reporters his government is still working on retaliation options, Bloomberg reports.

Monday, Aug. 24

Vice President JD Vance defends the Canada trade war during a visit to Maine; Sen. Susan Collins skips the rally, The Hill reports.

Reactions

Carney said the U.S. wants to destroy Canadian companies and that his government is examining ways to retaliate against Trump's new tariffs, according to Bloomberg. He added that he is willing to continue trade talks if the U.S. adopts the "right attitude."

Ford's threat to pull the plug on power exports was reported by outlets across the spectrum, from Cleveland.com and PennLive to the conservative Citizen Free Press.

Canadian businesses that deal with the U.S. fear a "vortex of downward pressures" from the tariffs, the Financial Times reported, describing pain and uncertainty already inflicted by the renewed trade war.

Mexico is taking the opposite tack. President Claudia Sheinbaum said she is optimistic about reaching a trade deal with Trump as her chief negotiator works in Washington — talks that come immediately after the Canada negotiations fell apart, per Bloomberg, CTV News and Reuters.

What's Next

The 50% tariff on Canadian automobiles, auto parts and steel is set to start Jan. 1, 2027, giving both sides roughly four months to cut a deal or escalate.

Carney's government has not settled on its retaliation package, Bloomberg reported, and Ford's power threat remains a threat rather than an action.

Mexico's negotiators continue their talks in Washington.

More

U.S. automakers and home builders are among the biggest losers from the new levies, MarketWatch reported, though analysts told the outlet the broad economic effect of the 50% tariffs could be modest for the U.S. overall.

Axios framed the stakes more bluntly: America's path back to lower inflation depends on trade wars and shooting wars becoming less economically disruptive, and right now Canada, China and Iran are all adding fresh risk.

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