Trudeau says Trump’s ‘dumb’ commerce conflict is designed to break down the Canadian financial system

An unbowed Prime Minister Justin Trudeau mentioned Tuesday that Canada will hit again arduous on the U.S. after President Donald Trump launched a North American commerce conflict by slapping devastating 25 per cent tariffs on nearly all Canadian items.

Talking to reporters at a information convention on Parliament Hill, Trudeau mentioned Trump is attempting to immediate “a complete collapse of the Canadian financial system” as a result of he thinks that can “make it simpler to annex us,” one thing the U.S. president has repeatedly mentioned he needs to do.

However Trudeau mentioned that can by no means occur as a result of “with regards to defending our nice nation, there isn’t any worth all of us aren’t keen to pay.”

Trudeau mentioned Canada is not going to again down from a combat within the face of “utterly bogus and utterly unjustified” commerce motion that has the potential to smash bilateral relations and immediate job losses, financial devastation and larger inflation on each side of the border.

Trudeau has already slapped tariffs on an preliminary tranche of $30 billion price of American items and promised $125 billion extra will face levies in three weeks’ time. He mentioned extra, non-tariff measures are coming if Trump does not instantly again down.

WATCH | PM says Trump needs to see ‘whole collapse’ of Canadian financial system: 

PM says Trump needs to see ‘whole collapse’ of Canadian financial system

Prime Minister Justin Trudeau mentioned Tuesday that the justifications for U.S. President Donald Trump’s tariffs — together with assertions round fentanyl — are bogus. ‘So, we truly should fold again on the one factor he has mentioned repeatedly, that what he needs is to see a complete collapse of the Canadian financial system, as a result of that’ll make it simpler to annex us, is the second half of his thought.’

Trudeau mentioned Trump is doing one thing “very dumb” by attacking Canada like this, given there will likely be critical ramifications for American employees and shoppers with larger costs on all the things from meals, automobile components and fertilizers to prescription drugs and paper merchandise.

Referencing a current Wall Avenue Journal editorial that referred to as Trump’s commerce motion towards allies “dumb,” Trudeau mentioned he had a message for the president: “Donald, you’re a very good man, this can be a very dumb factor to do.”

Trudeau mentioned Canada does not wish to be embroiled in a painful commerce conflict with a rustic it as soon as considered one thing of a greatest pal however that Trump’s act of financial self-sabotage has given the nation no selection.

“Your authorities has chosen to do that to you,” Trudeau mentioned in remarks directed on the American folks. “A combat with Canada may have no winners.”

Trudeau mentioned Trump’s claims that these tariffs are all in regards to the stream of fentanyl is nonsense and it is now clear there was by no means a risk of avoiding these tariffs by cracking down on the border as Canada did in the previous few months with a $1.3-billion border plan.

He mentioned the fentanyl excuse for the tariffs was one thing of a canopy — a “authorized justification” to faucet emergency presidential commerce powers so he can invoke tariffs that clearly violate the Canada-U.S.-Mexico Settlement (CUSMA) that Trump himself signed in his first time period.

Trudeau mentioned Trump’s actions might destroy one of the crucial profitable relationships the world has ever recognized whereas additionally drawing nearer to a “mendacity, murderous dictator” like Russian President Vladimir Putin.

“America launched a commerce conflict towards Canada, their closest ally, their closest pal, on the identical time they’re speaking about working positively with Russia,” Trudeau mentioned. “Make that make sense.”

WATCH | Trudeau’s full speech on Tuesday morning:

FULL SPEECH | Trudeau outlines response to U.S. tariffs, says Canada will ‘relentlessly’ combat to guard financial system

Prime Minister Justin Trudeau, talking from Parliament Hill on Tuesday, says Canada will instantly begin imposing tariffs on $30 billion price of U.S. items. Trudeau mentioned tariffs will likely be imposed on the remaining $125 billion of American merchandise in 21 days as a response to U.S. tariffs that went into impact on Canada Tuesday.

Trudeau mentioned he will not “sugarcoat” simply how damaging these tariffs may very well be for the Canadian financial system.

Economists have mentioned a tariff this massive might plunge the financial system right into a recession. The Financial institution of Canada mentioned late final month a protracted commerce conflict might result in “extreme” penalties that will likely be tough to reverse.

“That is going to be robust,” Trudeau mentioned, whereas additionally promising to harness the big fiscal firepower of the federal authorities to assist employees and enterprise climate this storm.

Trudeau didn’t announce particular tariff-relief measures on Tuesday however mentioned Ottawa is open to enjoyable employment insurance coverage necessities to assist employees who’re grappling with job loss.

The prime minister urged Canadians to rally across the flag and make patriotic selections when shopping for items and deciding the place to trip.

“Don’t hand over,” Trudeau mentioned. “That is the time to redouble your efforts. Canada stays the very best nation on the earth.”

Trump reacted to Trudeau’s speech, which was carried reside on American networks CNN, CNBC and Fox Information Channel. 

“Please clarify to Governor Trudeau, of Canada, that when he places on a Retaliatory Tariff on the U.S., our Reciprocal Tariff will instantly enhance by a like quantity!” he mentioned in a social media publish.

Premiers launch their very own counterattacks

The premiers are already promising countermeasures of their very own, together with pulling American liquor off retailer cabinets, mountaineering street tolls for American business drivers and blocking U.S. corporations from bidding for presidency procurement contracts to attempt to drive Trump to reverse course.

Ontario Premier Doug Ford mentioned he agrees with Trudeau’s rivalry that Trump is attempting to immediate an financial collapse in Canada.

Like Trudeau, Ford mentioned he is ready to “combat like we have by no means fought earlier than.”

Ford mentioned he’s ready to undergo with some extra draconian measures, together with presumably levying an export cost on each megawatt of energy Ontario sells to the U.S. within the coming days.

He additionally mentioned he is open to chopping off vitality provides totally to plunge some 1.5 million prospects within the U.S. into darkness, if essential.

Ford mentioned his authorities will use each device within the toolbox to hit again towards “the one man” who has ruined what was as soon as the very best bilateral relationship on the earth.

WATCH | Here is how Ford is responding to U.S. tariffs:

Here is how Ford is responding to U.S. tariffs

Doug Ford says he’ll ‘spare no expense to guard Ontario employees,’ whereas highlighting a slew of retaliatory measures in response to sweeping tariffs imposed by Donald Trump.

The Ontario premier urged American lawmakers, notably Republican congressmen and ladies and senators, to insurgent towards Trump’s insurance policies, which might make life much more tough for his or her constituents.

Ford mentioned American voters ought to punish Trump on the congressional midterm elections subsequent 12 months to ship a message they will not stand for this type of financial warfare towards a supposed ally.

“He must pay a worth within the midterms. If I’ve to go down there and knock on the doorways myself, I’ll,” Ford mentioned.

Poilievre says he is not a ‘MAGA man’

Alberta Premier Danielle Smith mentioned Trump’s actions are a betrayal.

“To see this escalation is so disappointing, so damaging,” she mentioned in an interview with CNBC. “I do not know why the president is behaving this fashion. It is unlawful and we will problem it.”

She mentioned the tariffs will drive up oil and gasoline costs for American shoppers, even when Trump is levying a smaller 10 per cent tariff on vitality.

Some U.S. Midwest refineries are totally reliant on heavy crude from Alberta, and the Individuals do not produce practically sufficient oil on their very own to fulfill demand. Canada exported greater than 4 million barrels of oil a day to the U.S. final 12 months.

It is apparent some Individuals will likely be on the hook for larger costs on the pump now that there are levies on their largest international provider, Smith mentioned.

Conservative Chief Pierre Poilievre, in the meantime, mentioned Trump “stabbed America’s greatest pal within the again.”

“My message to the president is that this: Canada will combat again. We’ll defend our folks and our financial system, and we’ll put Canada first,” he mentioned.

WATCH | Poilievre says he isn’t a ‘MAGA man’: 

Poilievre says he isn’t a ‘MAGA man,’ and is ‘Canada first’

Responding to a query about U.S. President Donald Trump’s feedback that Canada’s Conservative chief will not be a ‘MAGA man,’ Pierre Poilievre says he’s just for Canada and added that Canada won’t ever be the 51st state.

Poilievre mentioned any tariff income raised from the federal countermeasures needs to be plowed into serving to employees affected by the forthcoming financial dislocation.

He additionally sought to guarantee Canadians that he is not a Trump acolyte.

“The president says that he does not like me, he does not suppose I am a MAGA man. It is true, I am not,” he mentioned, referencing Trump’s Make America Nice Once more slogan. “I’ve one job to do: combat for this nation.”

NDP Chief Jagmeet Singh referred to as on the prime minister to reconvene Parliament to cross emergency laws to assist Canada take care of the tariff fallout.

“First let’s get assist in place for these employees. Let’s be sure they’ll get the assistance that they want, then we will fear about an election after that,” he mentioned.

Vance says Canada hasn’t been ‘critical’ on the border 

Vice-President JD Vance advised reporters on Capitol Hill Tuesday that the president is “going to have conversations with the Canadians.”

“We have to see actual engagement on the fentanyl problem. That’s essentially the underlying ingredient for tariffs. The Canadians haven’t been critical about stopping the drug commerce,” Vance claimed.

Regardless of Vance’s assertions, the Canadian authorities has been busy rolling out a $1.3 billion border safety package deal designed to curb the unlawful drug commerce and the stream of migrants — and that is already producing outcomes.

Information from the U.S. Customs and Border Safety (CBP) launched earlier this month exhibits there was a major lower in seizures of fentanyl coming from Canada.

The CBP’s personal knowledge registered a 97 per cent drop in January in comparison with December 2024 on the northern border — proof, the Canadian authorities says, that its new border safety measures are bearing fruit and the Individuals are being unreasonable.

Along with appointing a fentanyl czar whose solely job is to guide a nationwide crackdown on the lethal drug, the federal authorities has additionally deployed some 10,000 border and regulation enforcement personnel alongside the Canada-U.S. boundary and despatched new helicopters and drones into the skies to maintain a better eye on the forty ninth parallel.

Even earlier than these new efforts, Canada represented lower than one per cent of all seized fentanyl imports into the U.S., in line with federal knowledge. About 19.5 kilograms was seized on the northern border final 12 months in comparison with 9,570 kilograms on the southwestern border.

‘Financial call-to-arms’

Lana Payne, the president of Unifor, Canada’s largest private-sector union, issued an “financial call-to-arms” in what she’s calling “a full-on commerce conflict.”

“Each Canadian politician, enterprise chief, employee and resident should combat again. Trump has critically misjudged the resolve and unity of Canadians, and he has misjudged how damaging this commerce conflict will likely be for American employees,” she mentioned.

Trump’s tariff will make most Canadian items much less aggressive as a result of American importers will now should pay the U.S. authorities a 25 per cent levy to carry them into the nation.

These added prices might then be handed on to American shoppers, pushing up the value of all the things from automobile components and fertilizer to prescription drugs and paper merchandise.

Some importers might determine to drop sure Canadian merchandise altogether, placing strain on Canadian companies and the folks they make use of.

Business teams are already warning of dire penalties. Canadian Producers and Exporters mentioned Trump’s tariffs “threaten the way forward for probably the most profitable financial relationship on the earth.” The Canadian Federation of Impartial Enterprise referred to as the brewing commerce conflict “a large financial risk.” The Grain Growers of Canada mentioned the commerce conflict “might push many household farms to the brink.”

World Automakers of Canada, the trade group that represents 25 carmarkers like BMW and Honda, mentioned Trump has to rapidly elevate his tariffs “to keep away from everlasting and important harm to the North American automotive sector.”

The Enterprise Council of Canada mentioned Trump’s actions have left the trilateral commerce deal that he himself negotiated in his first time period, CUSMA, in tatters. “Nobody wins in a commerce conflict and the tariffs imposed at present by the Trump administration will damage employees, farmers and households,” the council mentioned.

The Canadian Affiliation of Petroleum Producers (CAPP) mentioned the nation’s relationship with the U.S. has “essentially modified.”

“We’re at a major second in Canada’s historical past — we have to seize this second” and change into much less reliant on the Individuals, CAPP’s president and CEO mentioned.