Doug Ford warns Canada may cut electricity and critical minerals to US amid trade tensions

Ontario Premier Doug Ford is pushing Canada to play its strongest cards in an escalating trade war with the United States: the electricity that keeps American lights on and the critical minerals that power everything from EVs to fighter jets.

Ford sent a letter to Canadian Prime Minister Mark Carney on August 17, 2026, calling on Ottawa to use electricity exports and critical mineral supply as leverage against newly imposed US tariffs. Those tariffs, carrying a 50% duty on roughly $28 billion worth of Canadian goods, took effect on August 21, sending the already fragile trade relationship between the two countries into freefall.

Talks collapse, retaliation begins

Trade negotiations between Washington and Ottawa collapsed on August 21, the same day the tariffs kicked in. Prime Minister Carney responded by pledging dollar-for-dollar retaliation.

Ford’s letter specifically highlighted nickel and cobalt as strategic assets Canada should be willing to restrict. Both minerals are essential inputs for battery manufacturing and defense applications. Neither electricity exports nor critical mineral shipments are directly covered by the latest round of US tariffs, which makes them clean targets for retaliatory action outside the existing tit-for-tat framework.

Ontario supplies clean hydroelectric power to several US states through an integrated cross-border grid. Michigan, New York, Wisconsin, and Minnesota all rely to varying degrees on Canadian electricity flowing south.

A familiar playbook, dusted off

This isn’t Ford’s first time floating the idea of using energy as a weapon. Back in March 2025, during an earlier round of tariff disputes, he suggested a 25% surcharge on Ontario’s electricity exports to states like Michigan and Wisconsin. He also floated the possibility of a total cutoff.

What this means for markets and supply chains

If Canada follows through on restricting mineral exports, the ripple effects would touch EV manufacturers, battery producers, and defense contractors who source raw materials from north of the border.

Energy markets in the northeastern US could also see price spikes. Ontario’s hydroelectric exports are competitively priced, and finding replacement power on short notice, particularly clean power, isn’t trivial. Utilities in Michigan and New York would need to source from alternative generators, likely at higher cost and potentially from fossil fuel sources.

For now, the ball is in Ottawa’s court. Carney’s dollar-for-dollar pledge sets the floor for Canada’s response, but Ford is clearly lobbying for something more targeted and more painful.