Prime Minister Justin Trudeau on Tuesday criticized U.S. President Donald Trump’s decision to impose tariffs on Canadian imports, calling it “a very dumb thing to do.”
The comment came as Trudeau announced retaliatory measures, imposing 25% tariffs on C$30 billion worth of U.S. imports.
Trudeau, who is set to step down at the end of the week, also accused Trump of attempting to harm the Canadian economy.
The retaliation follows Trump’s actions earlier in the day, which sparked a trade war with both Mexico and Canada. If necessary, Canada will target an additional C$125 billion worth of U.S. goods within 21 days, Trudeau stated.
“There is absolutely no justification or need whatsoever for these tariffs,” Trudeau told reporters, adding that Canada would challenge the U.S. measures at the World Trade Organization (WTO) and through the existing U.S.-Mexico-Canada trade agreement.
Trudeau emphasized that while Canadians are polite and reasonable, they would not back down when their country’s well-being is at stake.
In response, Trump stated that any retaliatory tariffs from Canada would be met with immediate, reciprocal tariffs of the same size. Trump has long accused Canada of not doing enough to stop the flow of fentanyl and its precursor chemicals into the U.S., a claim Trudeau dismissed as “completely bogus.”
Trudeau’s relationship with Trump has deteriorated over time, especially after the U.S. president made several disparaging remarks about Canada, including suggesting the country could become the 51st U.S. state. The tension worsened with Trump’s dissatisfaction over the U.S.-Mexico-Canada Agreement (USMCA), which Trudeau said was unlikely to be renegotiated ahead of the 2026 review.
Economists warn that Canada, which sends 75% of its exports to the U.S., could face a recession unless the tariffs are lifted quickly. Trudeau, however, noted that U.S. consumers would also feel the impact due to the interconnected nature of the two economies.
He cited a Wall Street Journal editorial from January, which criticized Trump’s actions, calling them “the dumbest trade war in history.”
To mitigate the economic effects, Trudeau promised that the Canadian government would offer expanded employment insurance benefits and direct support to businesses. Finance Minister Dominic LeBlanc also announced plans to reveal an initial support package aimed at cushioning the impact of the U.S. tariffs on Canadian workers and families.
In addition to tariffs, Canada is considering non-tariff measures, though Trudeau did not specify whether crude oil or potash exports could be targeted. Meanwhile, provinces like Quebec and Ontario have begun removing U.S. alcohol products from shelves, and Ontario Premier Doug Ford suggested further retaliatory measures, including a 25% surcharge on electricity exports to certain U.S. states.