Overall, the global stock market is experiencing a significant downturn as investors react to uncertainties surrounding US trade policy, economic growth concerns, and political decisions made by the Trump administration. Tech stocks, in particular, have been hit hard by the sell-off, with major companies like Tesla, Nvidia, Amazon, Microsoft, Apple, Alphabet, and Meta all seeing significant declines in their stock prices.
President Trump needs to understand that Canada will not be bullied and that we will retaliate if necessary,” Mr Ford said in a statement.
The threat comes after the US announced plans to impose tariffs on Canadian steel and aluminum, a move that has been met with strong opposition from Canada and other countries.
Mr Ford’s threat to cut off electricity exports is seen as a bold move in response to the escalating trade tensions between the two countries.
Analysts are closely watching the situation to see how it will impact the already fragile relationship between the US and Canada, and what further actions may be taken by both sides.
“If the United States escalates, I will not hesitate to shut the electricity off completely,” he said.
“Believe me when I say I do not want to do this. I feel terrible for the American people who didn’t start this trade war. It’s one person who is responsible, it’s President Trump.”
Mr Ford said Ontario’s tariff would remain in place despite the one-month reprieve from Trump, noting a one-month pause means nothing but more uncertainty.
Mr Ford’s office said the new market rules require any generator selling electricity to the US to add a 25pc surcharge. The tax “will be used to support Ontario workers, families and businesses.”
Bloomberg has reported that New York imported about 4.4pc of its electricity from Canada in 2023, and lower percentages for Minnesota and Michigan.
Wall Street’s “fear gauge” surged 14pc today after traders were spooked by Donald Trump’s trade war and its potential to put the US into recession.
The “fear gauge” – officially the CBOE Volatility Index – has risen by around 50pc this quarter so far and is heading for the biggest quarterly rise since the start of 2020, when the spread of Covid caused economic carnage.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “Unease about the effect of Trump’s tariffs hangs over financial markets at the start of the week.
“The prospect of a recession in the US is lurking, with consumer confidence falling, companies facing increasing trade complexity and investors turning more nervous.
David Morrison, senior market analyst at Trade Nation, said: “Risk sentiment has soured as investors react to President Trump’s various tariff announcements and as the US economic outlook begins to cloud over.”
Global stocks measured by MSCI fell 1.9pc after touching a near two-month low as investors worried about an economic slowdown after Donald Trump did not rule out a tariff-related recession.
Investors started seeking safety after Mr Trump talked in a Fox News interview about a “period of transition” while declining to predict whether his tariffs on China, Canada and Mexico would result in a US recession.
Robert Pavlik, senior portfolio manager at Dakota Wealth in Connecticut, cited concerns around tariffs including Mr Trump’s interview as key factors behind Monday’s mood on the markets.
He said: “When [Mr Trump] says there’s going to be pain felt he’s telling you this may not be short term in nature. This may not be a negotiation tactic.
“Tariffs create a bunch of uncertainties around costs, inflation and economic growth. You don’t know the end game and you don’t know the goal. How do you plan for that? How do you buy a stock for the future when you don’t know what the future holds?”
The FTSE 100 has fallen nearly 0.8pc to a one-month low as the effects of a trade war and pessimism about the US economy weigh down on global markets.
Chris Beauchamp, chief market analyst at online trading platform IG, said: “The weakness in US markets is making itself felt in Europe, and the FTSE 100 in particular is taking a beating, dropping to a one-month low.
“Banks and mining companies have driven the slump, offsetting a good day for utilities and consumer staples like Unilever.
“Last week’s key feature was the resilience of Europe versus US weakness, but as the stimulus story fades it is clear that the region’s indices can’t decouple entirely from Wall Street.”
European markets were helped last week amid expectations that Germany would significantly boost spending on defence and infrastructure under its new government.
Tesla shares plunged by more than 9.5pc in trading this afternoon amid a growing backlash against its boss Elon Musk.
Investors are worried that the billionaire’s vocal support for Donald Trump and hard-Right causes could permanently tarnish the Tesla brand.
The shares, which are down 32pc over the past month, have more than wiped off all their initial gains after Donald Trump election.
It comes after Tesla revealed that sales in January collapsed across the UK, EU and European Free Trade Area, by more than 45pc. In China, sales fell 11.5pc, but its main competitor, BYD, saw a 48pc increase.
At home, sales in California – which was historically seen as Tesla’s strongest market – dropped 12pc last year.
Jacob Falkencrone, of Saxo Bank, said in an analyst note: “Elon Musk’s political controversies are becoming a liability – Tesla’s brand favourability is at an all-time low, and his polarising views are alienating core customers, particularly in environmentally conscious markets.”
He added: “Investors are increasingly uneasy about Musk’s divided focus – he’s balancing leadership roles across Tesla, SpaceX, Neuralink, and now his controversial government role within the Trump administration.
“Some analysts now view Musk as a risk factor rather than an asset, as Tesla’s market valuation remains extremely high compared to traditional automakers.”
Bitcoin dropped to its lowest value since November after Donald Trump failed to woo investors at the inaugural Crypto Summit at the White House last week. The cryptocurrency fell up to 6.5pc to dip below $80,000 on Monday before paring most losses.
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