A new trade dispute between the U.S. and Canada has intensified after Ontario Premier Doug Ford imposed a significant electricity tax on U.S. border states, prompting strong backlash from President Trump’s administration. In response, the U.S. has introduced new tariffs on Canadian goods, further straining relations.

Trump criticized the move as retaliation for American tariffs, warning of long-term consequences for Canada’s energy industry. Ford defended the tax as a necessary response, even threatening to cut off power supply if U.S. tariffs persist.

The dispute has raised concerns about energy costs and supply in states like New York and Michigan, with local leaders urging federal intervention. Meanwhile, both countries have introduced broader retaliatory tariffs, disrupting supply chains and increasing consumer prices.

Though talks continue, neither side appears willing to compromise, raising fears of long-term economic fallout and damage to one of the world’s closest trade partnerships.