Canada and the United States are facing another major escalation in their growing trade war, with a Canadian leader now threatening to cut off electricity exports to America.
Ontario Premier Doug Ford has warned that Canada could take much tougher action if President Donald Trump continues pushing ahead with new tariffs against Canadian products.
The latest confrontation comes after Trump announced plans for 50 percent tariffs on a range of Canadian goods, adding even more pressure to an already strained relationship between the two longtime allies.
Ford has made it clear that Canada is prepared to fight back.
The Ontario premier said the province could once again consider imposing a surcharge on electricity exports to the United States, while also suggesting that more drastic measures could be on the table if the trade dispute continues to worsen.
Ontario is a major electricity supplier to parts of the United States, including states such as New York, Michigan and Minnesota. Ford has previously used energy exports as a potential bargaining tool during disputes with Trump.
The threat is particularly significant because the United States relies on Canadian energy and other resources, meaning a prolonged confrontation could create problems on both sides of the border.
Ford has also indicated that critical minerals and other Canadian resources could become part of the response. He argued that the United States needs to feel the consequences of its trade policies rather than expecting Canada to simply accept them.
The latest threats come after trade negotiations between the two countries collapsed. Canadian Prime Minister Mark Carney has accused Washington of making demands that Canada could not accept and has promised retaliatory tariffs on American goods beginning September 8.
Trump, meanwhile, has told Canadian leaders to "fall in line" and warned that Canada could face even tougher consequences if it refuses to cooperate.
The increasingly hostile exchanges have shocked many observers because Canada and the United States have traditionally maintained one of the world's closest economic relationships.
But the latest developments suggest that both sides are becoming increasingly willing to use their most valuable resources as weapons in the dispute.
With tariffs rising and threats of energy restrictions now back on the table, the trade fight between the neighboring countries appears to be entering a much more serious phase.