Canada SHØCKS the World as they Threaten To CɄT OFF Electricity Supply in Some Parts of the US… | HO

What can Canadians do to prepare for potential tariffs, higher prices? -  National | Globalnews.ca

For years, Canada has been quietly keeping the lights on in parts of the United States, providing critical electricity to various states. However, as tensions rise between the two nations over trade disputes and economic pressure, Canada is now considering flipping the switch—literally. If Canada follows through with this threat, entire regions of the US could face major power shortages, with massive economic consequences.

So, how did we get here, and what exactly is Canada planning? Let’s break it all down.

The Trade War That Started It AllThis latest escalation stems from an ongoing trade war between the US and Canada, which began in late 2024. During a private dinner at Mar-a-Lago, then President-elect Donald Trump made an offhand remark to Canadian Prime Minister Justin Trudeau, suggesting that Canada would be better off as the 51st state of the US. While the comment was initially brushed off as a joke, Trump doubled down on the idea, later referring to Trudeau as “Governor Justin Trudeau of the great state of Canada” on Truth Social.

The internet exploded with reactions—some amused, others outraged. However, what started as a dinner-table comment soon turned into a serious political dispute. By early January 2025, Trump had announced a 25% tariff on all Canadian imports, arguing that the US was “subsidizing Canada for almost $300 billion a year.” His ultimatum was clear: either Canada tightened its border security and complied with US trade demands, or they would face economic consequences.

Trudeau, not one to back down, responded with a firm “There isn’t a snowball’s chance in hell that Canada will ever become part of the United States.” As the rhetoric intensified, so did the stakes. On February 1, 2025, Trump made good on his threat and officially imposed the tariffs, setting off a chain reaction that led to Canada’s retaliation.

Canada’s Bold Counterstrike

Canada wasted no time responding. Trudeau’s administration announced a $155 billion tariff package targeting American exports, including $30 billion in direct trade penalties. But it didn’t stop there. Canadian officials began considering alternative ways to exert pressure on the US, including restricting American access to critical minerals and energy products—both of which the US relies on heavily.

Then came the boldest move yet: the possibility of cutting electricity exports to the US. Ontario Premier Doug Ford suggested that his province could restrict power supply to US states like Minnesota, Michigan, and New York if the tariffs weren’t lifted. This was no idle threat—approximately 1.5 million Americans rely on Canadian electricity, and cutting off the supply could trigger rolling blackouts, price hikes, and a major energy crisis in these regions.

Why Is Canadian Electricity So Important to the US?

Canada is one of the largest exporters of electricity in the world, with a vast hydroelectric network supplying power to the US through cross-border transmission lines. Hydroelectric power accounts for nearly 60% of Canada’s electricity generation, making it a clean and reliable energy source that the US heavily depends on.

States like New York, Vermont, and Minnesota receive significant portions of their electricity from Canada, primarily from Quebec’s vast hydroelectric reservoirs. In 2023 alone, Canada exported over 70 terawatt-hours (TWh) of electricity to the US, generating billions in revenue while keeping American homes and businesses powered.

If Canada were to cut off this supply, the impact would be immediate and severe. Energy prices would skyrocket, grid reliability would be compromised, and millions of Americans could face blackouts. Businesses that depend on stable electricity—such as manufacturers, tech companies, and hospitals—would also suffer, potentially leading to economic losses in the billions.

Canada’s Shift Toward Asia: A New Trade Strategy

While the US has been Canada’s largest energy customer for decades, recent tensions have pushed Canada to explore alternative markets. Instead of depending solely on the US, Canada has begun shifting its focus toward Asia, strengthening trade ties with China, Japan, and other energy-hungry nations.

This move was strategically timed. In May 2024, the expansion of the Trans Mountain pipeline was completed, tripling its capacity to 890,000 barrels per day. With this new infrastructure in place, Canada can now export more oil and gas directly to Asia, bypassing the US entirely.

Alberta, the heart of Canada’s energy industry, has wasted no time capitalizing on this shift. In early 2025, Alberta’s Environment Minister Rebecca Schultz flew to Tokyo to discuss liquefied natural gas (LNG) exports with major Japanese energy companies. Selling points included shorter shipping times and a more reliable supply chain compared to other global suppliers.

Beyond oil and gas, Canada is also ramping up exports of other critical resources, such as nickel and aluminum—both essential for electric vehicle production and industrial manufacturing. With growing trade partnerships in Asia and Europe, Canada is making it clear that it no longer relies solely on the US market.

The Ripple Effects on the US EconomyIf Canada were to cut off electricity and energy exports, the consequences for the US would be far-reaching:

Energy Crisis: States dependent on Canadian electricity—such as New York and Michigan—could face rolling blackouts and increased energy prices.

Supply Chain Disruptions: American industries that rely on Canadian minerals, oil, and gas would see higher costs and potential production slowdowns.

Higher Consumer Prices: Everything from electricity bills to gas prices could rise, hitting American consumers hard.
Economic Uncertainty: Businesses that rely on stable power and supply chains could be forced to reduce operations or move production elsewhere.

The Bigger Picture: Is This a Power Play?

Behind closed doors, Trudeau and Canadian officials have raised concerns that Trump’s aggressive stance on Canada isn’t just about trade—it’s about resources. With Canada’s vast reserves of oil, natural gas, fresh water, and minerals, the US stands to gain significantly if it can exert economic pressure on its northern neighbor.

If Canada successfully diversifies its trade and reduces its reliance on US markets, it could reshape the economic power balance between the two countries. By prioritizing partnerships with Asia and Europe, Canada is signaling that it won’t be strong-armed into submission.

What’s Next?

For now, the US and Canada remain in a tense economic standoff. If the tariffs remain in place, Canada could escalate its countermeasures by officially restricting electricity exports. The next 30 days are crucial, as both countries determine whether they will negotiate a truce or continue down this path of economic confrontation.

One thing is certain: Canada is no longer just America’s quiet northern neighbor. With its vast resources and growing global influence, it’s proving to be a force to be reckoned with. Whether the US is ready for that reality remains to be seen.