Ontario's premier says Trump's tariffs would be a disaster for US markets

[December 18, 2024]  By ROB GILLIES

TORONTO (AP) — The premier of Canada's most populous province said Tuesday President-elect Donald Trump's plan to impose sweeping 25% tariffs on all Canadian products would be a "disaster" that would hurt U.S. stock markets.

Ontario Premier Doug Ford also said in an interview with The Associated Press that he's “extremely worried” about Trump's plan to launch a mass deportation of millions of undocumented people. Ford said he has a plan to send hundreds of police officers to the border if they come north.

Ford said tariffs won't work considering how integrated the U.S. and Canadian economies are. He noted that in the auto sector alone parts and go back and forth between Canada-U.S. border seven or eight times before being assembled in Ontario or Michigan.

“It is so integrated. I don't even know how you separate that in the supply chain. It would be a disaster,” Ford told the AP. “It will affect the market. The market will drop and we have every CEO saying that is not the way to go."

Ford said the market consequences will get Trump's attention.

"I know he has many scorecards, but one is the stock market. It will affect the market, the market will drop,” Ford said.

Brian Hughes, a Trump-Vance transition spokesperson, said in response to Ford's comments that “President Trump has promised tariff policies that protect working Americans from the unfair practices of foreign companies and foreign markets.”

Ford said he's also very worried about Trump’s mass deportation plan. Trump has talked about creating “the largest mass deportation program in history,” calling for using the National Guard and mobilizing domestic police forces.

“I am extremely concerned," Ford said. “We do have a plan ready. We have hundreds of provincial police officers that are ready within hours, if not immediately, to hit the borders.”

Ford said a combination of local police, provincial police and the federal government will all be working together. “We’ll make sure that we tighten up that border like we’ve never seen before," he said.

Trump has threatened to impose 25% tariffs on all Canadian goods if Canada and Mexico do not stem the flow of migrants and fentanyl from entering the U.S. border — even though far fewer of each crosses into the U.S. from Canada than from Mexico.

Ford made the comments shortly after Canada's federal government announced some more details about a billion dollar border plan that's designed to avert the tariffs. Canada's national police plans to create a new aerial intelligence task force to provide round-the-clock surveillance of Canada’s border using helicopters, drones and surveillance towers.

Canada will also propose to the United States the creation of a North American “joint strike force” to target organized crime groups that work across borders.

Ontario Premier Doug Ford attends a news conference at Queen's Park Legislature in Toronto, on Thursday, Dec. 12, 2024. (Chris Young/The Canadian Press via AP)

“We’re stepping up to keep our border strong and secure: By deploying new helicopters, drones and surveillance tools. By adding new scanners and sniffer dog teams to stop and seize fentanyl. By cracking down on the money laundering that’s funding cross-border crime,” Canadian Prime Minister Justin Trudeau said in a post on X.

Trudeau is under pressure from some of his own lawmakers to resign after his finance minister quit cabinet. Ford said it’s up to Trudeau to resign and said Canada’s provincial premiers are united in telling the Americans how important U.S-Canada trade is.

Ford reiterated he would restrict electricity exports to Michigan, New York and Minnesota if the sweeping tariffs are imposed.

“I want to sell them more energy, more critical minerals, but I’m going to always keep every tool in our tool box available” Ford said. “That’s the the last thing I want to do. We have the energy. They need the energy.”

About 60% of U.S. crude oil imports are from Canada, and 85% of U.S. electricity imports as well.

Canada is also the largest foreign supplier of steel, aluminum and uranium to the U.S. and has 34 critical minerals and metals that the Pentagon is eager for.

Nearly $3.6 billion Canadian ($2.7 billion) worth of goods and services cross the border each day. Canada is the top export destination for 36 U.S. states.

Ford said he spoke with the governors of Michigan and New York and they “fully understand.” Michigan is Ontario’s top trading partner.

“We want to sit down and explain to Trump and inform him that we aren’t the enemy," Ford said. “And as for Mexico I want to do a bilateral trade deal directly with the U.S.”

Flows of migrants and seizures of drugs at the two countries’ border are vastly different. U.S. customs agents seized 43 pounds of fentanyl at the Canadian border during the last fiscal year, compared with 21,100 pounds at the Mexican border.

Most of the fentanyl reaching the U.S. — where it causes about 70,000 overdose deaths annually — is made by Mexican drug cartels using precursor chemicals smuggled from Asia.

On immigration, the U.S. Border Patrol reported 1.53 million encounters with migrants at the southwest border with Mexico between October 2023 and September 2024. That compares to 23,721 encounters at the Canadian border during that time.

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