Canada has threatened to cut off electricity exports to the United States as its trade dispute with President Donald Trump's administration escalates. The threat marks a significant escalation in tensions between the two neighbouring countries, which have long relied on close economic and energy ties, and raises the prospect of real economic pain for American consumers and businesses if the standoff continues to worsen.

The dispute stems from the broader tariff battle Trump has pursued since returning to office, which has repeatedly strained relations with Canada, one of America's largest trading partners. Canada supplies significant amounts of electricity to US states, particularly in the north-east and along the border, meaning any cut-off could have direct consequences for American households and industry reliant on that supply.