Canada’s Trudeau slaps 25% tariff on US imports, calls Trump’s trade war ‘very dumb’

Canadian Prime Minister Justin Trudeau

Canadian Prime Minister Justin Trudeau declared on Tuesday that Canada is not going to again down in its escalating trade war with the United States, calling US President Donald Trump’s tariffs a “very dumb thing to do.” In response, Trudeau introduced 25% retaliatory tariffs on $30 billion price of US imports.
“The United States launched a trade war against Canada… Canadians are reasonable. We are polite. We will not back down from a fight,” Trudeau stated, emphasizing that whereas he considers Trump a “smart guy,” his trade insurance policies are reckless.
Trump’s endgame? Trudeau alleges annexation motive
Trudeau went additional, claiming Trump’s final objective is to see Canada’s financial system “collapse” to make annexation “easier.” The explosive comment comes as Washington implements sweeping tariffs—25% on Canadian and Mexican imports and 10% on Canadian power exports.
Trump, who has beforehand floated the thought of creating Canada the 51st US state, has defended the tariffs as vital to guard American jobs. However, Trudeau’s feedback mark the strongest Canadian pushback but, suggesting a deeper geopolitical motive behind the financial battle.
Markets rattle as trade tensions escalate
Global markets reacted negatively, with the Dow dropping over 500 factors following the announcement. Economic analysts warn the tariffs might set off inflation and disrupt North American provide chains. Canada’s countermeasures, set to take impact in three weeks, will goal key US sectors, together with agriculture and metal.
Meanwhile, Mexico’s President Claudia Sheinbaum vowed to impose retaliatory tariffs, including one other layer to the rising North American trade dispute. Experts say Trump’s strikes might push US trade coverage again to its most protectionist stance since World War II.
No decision in sight
Despite diplomatic efforts, neither aspect seems keen to de-escalate. “Our tariffs will remain in place until US trade action is withdrawn,” Trudeau stated.
With each nations digging in, the trade war reveals no indicators of easing—elevating fears of long-term financial penalties for companies and customers on either side of the border.