Ontario Hits US With Energy Tax

Perhaps the White House thought that Ontario Premier Doug Ford was kidding, or possibly just posturing when he warned that he would respond to US tariffs by charging more for the energy it sells to the US. He wasn’t, and now people in New York, Michigan, and Minnesota can prepare to pay an additional $69/month on their electric bills. See how this tariff thing works?

This may well just be the first volley in a larger trade war. Canada is justifiably upset over the $21 billion in tariffs that the US imposed, then paused, then imposed again, then paused again, on things like American orange juice, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles, and certain pulp and paper products. Canada’s most populous territory has made it clear that they’re not interested in playing the games the US president is playing.

“I will not hesitate to increase this charge. If the United States escalates, I will not hesitate to shut the electricity off completely,” Ford said at a news conference in Toronto. “Believe me when I say I do not want to do this. I feel terrible for the American people who didn’t start this trade war. It’s one person who is responsible, it’s President [Punk].”

Don’t think for a hot second that this on-again/off-again approach by the president makes any difference. The Canadian tariff applies regardless until the threat of tariffs is completely removed. Ford said that the one month pause meant nothing more than more uncertainty and he’s not going to play that back-and-forth game.

“It needs to end. Until these tariffs are off the table, until the threat of tariffs is gone for good, Ontario will not relent,” Ford said.

This is yet another indication of how tariffs affect US households negatively and how out of touch the White House is. Over the weekend, Punk admitted “There is a period of transition because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing, and there are always periods of, it takes a little time. It takes a little time, but I think it should be great for us.”

History would indicate that the president is wrong and horribly so. Not only has the price of cars, groceries, and other necessities gone up, but the stock market continues to slide. By 10:05 AM ET this morning, the broad S&P 500 fell 1.79%, or 103.31 points, to 5,666.89 after last week posting its worst week since September. The blue-chip Dow dropped 0.85%, or 363.96  points, to 42,437.76 and the tech-laden Nasdaq shed 2.77%, or 504.16 points, to 17,692.06. The benchmark 10-year Treasury yield slipped to 4.225%. These are not the signs of a healthy economy!

As the economic downturn continues to put American citizens at a disadvantage, we have a responsibility and obligation to scream, shout, and resist in every way possible. Don’t make any discretionary purchases. When possible, shop with small, local merchants. Cut back on unnecessary travel. Use public transportation when possible.

For all the pain that American citizens feel from the tariffs, the White House needs to feel increasingly threatened. Failure to say anything allows Punk & Co. to claim that we’re okay with this mess.

We’re not.