Ontario won’t walk back retaliatory measures despite one-month tariff exemption for many Canadian goods

Ontario will be going ahead with its retaliatory measures against the U.S. despite a one-month reprieve on the 25 per cent tariff placed on many Canadian goods.

Reuters is reporting that U.S. President Donald Trump has exempted goods from both Canada and Mexico that fall under an existing free trade agreement until April 2.

However, a spokesperson for the premier’s office has confirmed that U.S. booze will remain off LCBO shelves and a planned 25 per cent export tax on the electricity that Ontario sends to three U.S. states will still go into effect as planned on Monday.

“He (Trump) needs to drop tariffs entirely,” Ivana Yelich said in an email to CTV News.

The premier later posted on social media that a pause on some tariffs “means nothing.”

“Until President Trump removes the threat of tariffs for good, we will be relentless,” Ford wrote.

Ontario has taken a number of actions in response to the tariffs that went into effect on Canadian goods on Tuesday, including the removal of approximately 3,600 U.S. products from LCBO shelves.

It has also ripped up a $100 million contract with Starlink’s Elon Musk and moved to prohibit American companies from being able to bid on nearly $30 billion in procurement contracts.

On Thursday, Ford appeared on Fox Business moments after the one-month reprieve on the tariffs on many Canadian goods was made public and was asked whether it would prompt him to reconsider some of the actions the province was taking, specifically a 25 per cent surcharge on electricity used to power 1.5 million homes and businesses in New York, Michigan and Minnesota.

Ford answered it would not and pointed out that only 62 per cent of Canadian goods are covered by the North American free trade pact, meaning many other goods will still face a 25 per cent tariff.

“I apologize to the American people. There is one person to be blamed and that is President Trump,” Ford said.

Last month, Ontario put its retaliatory actions on hold after a deal was reached at the eleventh hour to delay the imposition of tariffs on Canadian and Mexican goods until March 4.

This time around it appears no such pivot is forthcoming.

Speaking with Fox Business, Ford pointed out that Trump has “said before” that he would delay the tariffs only for them to be brought back one month later.

“I have learned one thing. You touch a stove and you burn yourself, you don’t touch that stove again,” the premier said.

Ford threatens to double energy tax

Ford sent a letter to the senators, congressmen, congresswomen and governors of New York, Michigan and Minnesota on Tuesday to inform them about the province’s plan to implement the surcharge on electricity.

He also warned that he was prepared to increase the tax if necessary.

In an earlier interview with Newstalk 1010 on Thursday, Ford said he would up the tax to 50 per cent if Trump’s “economic attack” on Canada continued.

A spokesperson for Ford’s office would not confirm under what circumstances the tax would be doubled but when asked for specifics Ford did mention the April 2 date Trump has set to roll out additional ‘reciprocal’ tariffs on trading partners.

That is now also the date that a 25 per cent tariff on most Canadian goods could now go into effect.

“April 2. That is kind of the date that President Trump has put out there. Hopefully he will come to a reality by then. Businesses are hurting in both countries,” Ford told Newstalk.

At this point few details have been released about the export tax on electricity and how it might be collected.

Ontario Energy Minister Stephen Lecce was asked for further details on Thursday and would only say that officials would provide more information “in the days ahead.”