Ontario slaps 25% tax increase on electricity exports to US in response to Trump's trade war

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00:00The Canadian province of Ontario applies some 25%

00:03electricity surcharge in the US in response

00:06to Donald Trump's tariff war.

00:08This is the latest in the disintegration of relations

00:12between the United States and Canada,

00:14and a direct response, of course, to Washington

00:16some four days ago, slapping 25% tariffs on trade

00:20coming south from Canada.

00:22Also, this man, Mark Carney, has been selected

00:24to succeed Justin Trudeau as leader of Canada's Liberal

00:27Party, and therefore as Prime Minister of the country.

00:29He's promising to defend Canada against any threat

00:32from the neighbours, meaning Donald Trump, his tariffs,

00:35and talk of annexation.

00:37Let's bring in our correspondent, Christopher Julie,

00:39who's joining us from Ottawa.

00:41Christopher, good evening to you.

00:43Tell us about these tariffs from Ontario against the US.

00:48The court promised to enact these tariffs,

00:50and even though Donald Trump put his tariffs against Canada,

00:54and your audience will have to be patient here,

00:58the tariffs from the US to Canada bounce back and forth

01:01almost hourly at times.

01:03Doug Ford said regardless of whether the US tariffs

01:05against Canada are suspended, he will go ahead

01:09and impose his as he did today.

01:12And as you said, 25% on electricity exports

01:16to three states, Minnesota, Michigan,

01:19and most importantly, New York.

01:20We're talking about 1.5 million homes.

01:24Each day it's going to cost 277,000 US dollars.

01:30If Trump doesn't back down, Doug Ford, the Premier of Ontario,

01:33said he will shut the electricity off.

01:36He's already removed all US alcohol from Ontario shelves,

01:42from the Liquor Control Board of Ontario,

01:44which is the largest provider of alcohol in the world,

01:47actually.

01:49And he's also forbidden any US companies

01:53from bidding on government contracts in Ontario.

01:57So Doug Ford is really hammering home the message

02:01that you don't mess with Canada, and most importantly for him,

02:04Ontario.

02:05It seems in some ways that Trump has met his match.

02:08But obviously, we'll see how this one plays out.

02:09Now, of course, in terms of the leadership of Canada,

02:12Mark Carney, former governor of the Bank of England,

02:14many people, of course, will know him for that.

02:16But he is a Canadian.

02:18And here he is now as leader of the Liberals,

02:20succeeding Justin Trudeau.

02:21What is his agenda?

02:23How will this change Canada's approach to the United States?

02:26Well, as you cited earlier, Mr. Carney, in his acceptance

02:30speech last night, devoted a good chunk of it

02:34to reminding Donald Trump that Canada is a sovereign country.

02:39And again, like Doug Ford, in nicer terms,

02:41said don't mess with Canada.

02:43As we speak, Mr. Carney is meeting

02:46with the Liberal caucus, with Justin Trudeau,

02:48the outgoing prime minister.

02:49He will also have a meeting with Canada's 10 premiers

02:54of the 10 provinces rather than the three territories.

02:56And we're expecting as early as tomorrow

02:58he could be sworn in as Canada's next prime minister.

03:02And in terms of what he will do next, give us a sense of that.

03:07Well, in terms of logistics for his government,

03:09he will have to form a cabinet.

03:10And that will come this week.

03:12And we expect that a week from today,

03:16he will call an election to seek a mandate.

03:18It's an election, a general election

03:20that's earlier than scheduled.

03:22That one is supposed to happen no later than October 20th.

03:26But you've got a situation here where the US, the tariff

03:30threat, the annexation threat is top of mind for Canada.

03:33So his top priority will be, again, defending jobs,

03:37defending the economy, reinforcing sovereignty.

03:42And down the road, looking at expanding relationships

03:47with other allies, most particularly in Europe,

03:50starting with trade.

03:52Indeed, and it is worth noting, Mark Carney,

03:54a very much rated character internationally,

03:57regarded as a smart gentleman indeed,

03:59and taking on a job with a real challenge

04:01just over the border in Donald Trump.

04:03Christopher Julie, thank you so very much indeed

04:05for joining us and giving us that breakdown

04:07there from Canada.

04:08Thank you very much indeed, our correspondent, Christopher Julie.

04:11Steve, thank you for joining us.

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