White House: Canada shifting from ally to economic competitor

The US administration has suggested that Canada may be shifting from a longtime ally to an economic competitor, as tensions between the two nations escalate over trade policies and retaliatory measures.

“Canada is a neighbour. They are a partner. They've always been allies. They may now be becoming a competitor,” White House press secretary Karoline Leavitt stated during a press briefing, Caliber.Az reports referring to US media.

She was responding to questions about the growing trade dispute between the US and Canada, as well as concerns over Canada’s threat to cut off electricity supplies to parts of the United States.

Despite the tensions, Leavitt reaffirmed that US President Donald Trump believes “Canadians would benefit tremendously” from their country becoming part of the United States. She reiterated that Trump continues to propose that Canada become the “51st [American] state.”

At the same time, Leavitt echoed Trump’s warning that Washington would “impose serious consequences” on Canada if it proceeded with cutting off power to neighbouring US regions.

The remarks come as the trade dispute between the US and Canada intensifies. Trump recently announced that his administration would impose a 50% tariff on Canadian aluminium and steel, set to take effect on March 17 — double the previously planned rate.

Ontario Premier Doug Ford strongly condemned the decision, urging Trump to "stop the chaos" and warning that Canada "will not back down." Ford also did not rule out the possibility of cutting off power to the US, stating, “We will be relentless.”

“President Trump’s tariffs are a disaster for the US economy. They’re making life more expensive for American families and businesses,” Ford said in an earlier statement.

Ontario currently supplies electricity to approximately 1.5 million American homes in Minnesota, Michigan, and New York. Ford warned that Ontario would maintain its hardline stance until the US permanently eliminates its tariff threats.

“Until the threat of tariffs is gone for good, Ontario won't back down. We'll stand strong, use every tool in our toolkit, and do whatever it takes to protect Ontario,” Ford emphasised.

Even after Trump announced a temporary, month-long reprieve on the tariffs earlier this month, Ford made it clear that Ontario would not delay its own retaliatory measures, citing ongoing uncertainty over the US position.

As part of its response, Ontario’s government introduced a 25% surcharge on electricity exports to the US. This measure is expected to generate approximately $300,000 CAD ($208,000) per day, with Ford stating that the funds will be used “to support Ontario workers, families, and businesses.”

This new surcharge comes in addition to the $30 billion CAD ($21 billion) worth of retaliatory tariffs imposed by the Canadian federal government on various US products. These include American orange juice, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles, and select pulp and paper products.

By Tamilla Hasanova