Ontario Premier Doug Ford is pushing Canada to play its strongest cards in an escalating trade war with the United States: the electricity that keeps American lights on and the critical minerals that power everything from EVs to fighter jets.
Ford sent a letter to Canadian Prime Minister Mark Carney on August 17, 2026, calling on Ottawa to use electricity exports and critical mineral supply as leverage against newly imposed US tariffs. Those tariffs, carrying a 50% duty on roughly $28 billion worth of Canadian goods, took effect on August 21, sending the already fragile trade relationship between the two countries into freefall.
Talks collapse, retaliation begins
Trade negotiations between Washington and Ottawa collapsed on August 21, the same day the tariffs kicked in. Prime Minister Carney responded by pledging dollar-for-dollar retaliation.
Ford’s letter specifically highlighted nickel and cobalt as strategic assets Canada should be willing to restrict. Both minerals are essential inputs for battery manufacturing and defense applications. Neither electricity exports nor critical mineral shipments are directly covered by the latest round of US tariffs, which makes them clean targets for retaliatory action outside the existing tit-for-tat framework.
