Trump trying to engineer ‘total collapse’ of Canada’s economy, accuses Trudeau
Canadian PM Justin Trudeau said said retaliatory tariffs will “demonstrate” there are “no winners in a trade war”
Toronto: Canadian Prime Minister Justin Trudeau has accused US President Donald Trump of trying to engineer a “total collapse” of Canada’s economy so as to make it “easier” for America to “annex” it.
He made that accusation as a North American trade war erupted on Tuesday with Trudeau announcing 25% retaliatory tariffs on CA$ 30 billion (about US$ 20.69 billion) worth of American imports immediately. They went in effect as did the United States’ 25% tariffs on Canadian exports other than energy which is being tariffed at 10%.
Speaking to the media on Tuesday morning, “Today the US launched a trade war against Canada,” adding that Ottawa was not going to back down.
Trudeau said the tariffs will remain in place until the US tariffs are withdrawn. He also warned of non-tariff measures against the US in coordination with Canadian provinces and territories.
He said these tariffs were being imposed as US President Donald Trump was “talking positively with Russia”.
“Let that make sense,” he said.
He said the tariffs will “demonstrate” there are “no winners in a trade war.” He said the US was using the legal pretext that Ottawa was “unwilling to help in the fight against illegal fentanyl”. He described that characterisation as “totally false”.
He said the priority was on getting the US tariffs lifted but Trump seemed to be focused on “destroying the Canadian economy” in an attempt to annex it.
Trudeau has not spoken to Trump since the latter agreed to pause the tariffs last month. The Canadian PM said he hoped to speak to the US President in the days ahead.
Ironically, Trudeau addressed the media at the House of Commons which has been prorogued since early January as the ruling Liberal Party holds its leadership race. Opposition parties have already demanded an emergency session be called immediately to address the tariff crisis.
Earlier, on Monday, Trudeau has said there was “no justification” for imposition of the tariffs.
In a statement issued by the prime minister’s office on Monday evening, Trudeau said, “Let me be unequivocally clear – there is no justification for these actions.”
Trump had threatened to impose 25% tariffs on Canadian exports and 10% tariffs on Canadian energy. However, they were paused in February for a 30-day period which expired on Tuesday.
Trump said on Monday the tariffs were going ahead. “The tariffs, you know, there are all set. They go into effect tomorrow,” he told the media at the White House in Washington.
“No room left for Mexico or for Canada,” he added.
In response, Trudeau said Canada will “respond” with 25% tariffs against CA$155 billion (about US$ 106.91 billion) of American goods, starting with tariffs on CA$ 30 billion worth of goods immediately, and tariffs on the remaining CA$ 125 billion (approximately US$ 86.22 billion) on American products in 21 days’ time.
“Our tariffs will remain in place until the US trade action is withdrawn,” he said, adding if the American tariffs did not cease, Ottawa was “in active and ongoing discussions with provinces and territories to pursue several non-tariff measures”.
“While we urge the US administration to reconsider their tariffs, Canada remains firm in standing up for our economy, our jobs, our workers, and for a fair deal,” he said.
Soon after being elected President in November last year, Trump had threatened the tariffs, predicating them on the flow of the deadly drug fentanyl and illegal immigrants from Canada and Mexico into the US.
Trudeau said that while less than one per cent of the fentanyl “intercepted at the US border comes from Canada, “we have worked relentlessly to address this scourge that affects Canadians and Americans alike”.
Canada has implemented a CA$ 1.3 billion (about US$ 897 million) border plan to curb the flow of fentanyl. In its concessions to America, Ottawa has appointed a Fentanyl Czar, listed transnational criminal cartels as terrorist organisations, launched the Joint Operational Intelligence Cell, and is establishing a Canada-US Joint Strike Force on organized crime. He pointed out that fentanyl seizures from Canada have dropped 97% between December 2024 and January 2025 to a near-zero low of 0.03 pounds seized by US Customs and Border Protection.
