Canada threatens US energy ban ⚡+ Trump backs dockworkers 👷‍♂️

Author

Ben Thompson
December 13, 2024

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In today’s email:

  • Cut Off: 🔋 Ontario threatens energy ban on US.

  • Tetris: 🚢 The crazy-complex process of organizing a container ship.

  • Out The Way: 🚜 Tractors invade London as farmers protest.

  • Which Side: 🤖 Trump backs dockworkers over port automation.

TRADE NEWS

Ontario Threatens US Energy Cutoff Over Trump Tariffs

Ontario Premier Doug Ford has warned of potential retaliation against the US over President-elect Donald Trump's proposed 25% tariffs on Canadian imports. Ford has threatened to halt electricity exports to US states such as Minnesota, Michigan, and New York and to ban Ontario’s liquor control board from purchasing American alcohol. These actions are aimed at defending Canadian jobs and industries.

“If you attack Ontario and Canadians, we will use every tool to defend ourselves,” Ford stated. This strong stance comes as the US plans tariffs to address issues like illegal immigration and drug trafficking. Canadian officials argue the tariffs would hurt both economies, with Prime Minister Justin Trudeau warning they would drive up costs for American consumers.

Canada, which supplies 60% of US crude oil imports and significant electricity, could deal a severe blow to US energy access by restricting exports. Ontario is also considering limiting critical mineral exports essential for electric vehicles and barring US companies from government procurement.

The Bank of Canada has already reacted by lowering interest rates, citing the tariffs as a major uncertainty for Canada’s economy. Governor Tiff Macklem emphasized the potential economic fallout if these tariffs materialize.

As Trump’s January inauguration approaches, both nations are engaging in high-stakes negotiations to avoid a trade war that could severely strain their economic ties. See clip

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VIDEO OF THE DAY

The Crazy-Complex Process of Organizing a Container Ship

Container ships are meticulously packed using a precise system. Containers are assigned coordinates based on size, weight, destination, and contents. This ensures balance, safety, and efficiency, accounting for physics, hazardous materials, and piracy risks during transit.

GLOBAL TRADE SNIPPETS

Tractors invade London as farmers escalate protests. Farmers take to London streets with tractors, intensifying protests against agricultural policies. The disruptive demonstrations highlight mounting tensions over farm support, drawing national attention to rural economic challenges.

China strengthens alternate trade ties amid US and EU tensions. Amid ongoing tensions with the US and EU, China is actively bolstering alternative trade partnerships. This strategic pivot aims to diversify its economic relations and mitigate the impact of geopolitical challenges.

WTO barometer suggests cautious trade recovery. The latest WTO Goods Trade Barometer suggests global merchandise trade growth may be stabilizing, as declining demand tapers off, paving the way for a more gradual, albeit uncertain, recovery ahead.

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SHIPPING NEWS

Trump Backs Dockworkers Over Port Automation

TRIVIA

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