In a dramatic escalation of tensions, Canada is poised to cut off electricity exports to the United States in retaliation for President Donald Trump’s shocking decision to double tariffs on foreign steel from 25% to 50%. This unprecedented move has sent shockwaves through markets, with defense steel stocks plummeting and fears of a recession rising to 60%.

As of May 30, 2025, Trump’s steel tariffs have ignited a fierce trade war, prompting Ontario Premier Doug Ford to threaten a 25% surcharge on every megawatt hour of electricity supplied to U.S. states like Minnesota, Michigan, and New York. This could impact 1.5 million American homes, increasing monthly bills by approximately $100 and draining hundreds of thousands of dollars daily from American wallets.

The stakes couldn’t be higher. With the North American supply chain hanging in the balance, Ford’s ultimatum is clear: “Back off or we 𝓀𝒾𝓁𝓁 the juice.” The potential for widespread disruption looms as factories across the border rely on the same grid. Trump’s tariffs are already inflating costs for U.S. manufacturers, while Ford’s electricity surcharge threatens to spike utility bills just as summer demand peaks.

In a rapid-fire sequence of retaliatory measures, Canada has already enacted a series of penalties on American goods, including a ban on U.S. alcohol and the cancellation of major contracts with U.S. firms. The political divide between Canadian Prime Minister Justin Trudeau and Ford complicates matters further, as each leader adopts starkly different strategies in handling the crisis.

With both economies armed and ready, the question now is whether Washington will blink first or whether Canada will pull the plug on its power exports, plunging the U.S. into an energy crisis. As the clock ticks down, the ramifications of this trade war could reshape the economic landscape on both sides of the border. The world watches, anxiously awaiting the next move in this high-stakes showdown.