Tobi Lutke, the CEO of Shopify, Canada’s largest tech company, sharply criticized Prime Minister Justin Trudeau’s handling of the escalating trade dispute with the United States.
Lutke argued that many of President Donald Trump’s demands on trade, immigration, and the fentanyl crisis align with what Canadians want from their government, accusing Trudeau of failing to prevent a trade war that now threatens Canada’s economy.
On Saturday, President Trump signed an executive order imposing 25% tariffs on Canadian imports, citing Canada’s failure to meet U.S. demands on immigration enforcement and the fentanyl crisis. Additionally, the order includes a 10% tariff on Canadian energy exports.
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Lutke, whose e-commerce company Shopify is valued at approximately $150 billion, expressed concern about the impact of the tariffs and criticized Trudeau’s decision to retaliate with his own tariffs on $107 billion worth of U.S. goods.
“Canada thrives when it works with America together. Win by helping America win. Trump believes that Canada has not held its side of the bargain,” Lutke wrote on X.
He also warned that Trudeau’s approach could worsen the economic strain for Canadian businesses and citizens.
“These are things that every Canadian wants its government to do, too. These are not crazy demands, even if they came from an unpopular source. These tariffs are going to be devastating to so many people’s lives and small businesses,” he added.
I’m disappointed that trump admin placed the 25% tariffs.
I’m disappointed that this is our governments response.
I love Canada and want it to thrive. I built Canada’s biggest tech company here because I know it’s a special place.
Canada thrives when it works with America… https://t.co/Pt9MH8Aq9s
— tobi lutke (@tobi) February 2, 2025
The trade relationship between the U.S. and Canada is one of the largest in the world, with more than $900 billion in goods and services exchanged in 2023.
According to the U.S. Census Bureau, the U.S. imported approximately $377 billion in goods from Canada while exporting $322 billion.
Canada is particularly vulnerable to trade disruptions, as roughly 75% of its exports go to the United States, whereas only about 12% of American exports are sent to Canada.
Trump acknowledged the potential economic strain from his tariffs but defended them as a necessary measure.
“Maybe (and maybe not!) there will be some pain, but it will be worth the price that must be paid,” Trump wrote on Truth Social on Sunday.
He also questioned U.S. policies that have benefited Canada, suggesting that economic support for America’s northern neighbor should be reconsidered.
“We pay hundreds of billions of dollars to SUBSIDIZE Canada. Why? There is no reason. We don’t need anything they have,” Trump wrote.
In a remark that has drawn strong reactions from Canadian leaders, Trump added, “Canada should become our Cherished 51st State. Much lower taxes, and far better military protection…AND NO TARIFFS.”
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“We pay hundreds of Billions of Dollars to SUBSIDIZE Canada. Why? There is no reason.
We don’t need anything they have. We have unlimited Energy, should make our own Cars, and have more Lumber… https://t.co/uZAdeOmkkT pic.twitter.com/LmGJCl18Wx
— Mario Nawfal (@MarioNawfal) February 2, 2025
Lutke criticized Trudeau’s retaliatory tariffs and warned that escalating the conflict could do more harm than good for Canada.
“Leadership is about doing what’s right, not what is popular. And hitting back will not lead to anything good. America will shrug it off. Canada will decline,” Lutke wrote.
He argued that there were better diplomatic and economic options available than retaliatory tariffs, calling Trudeau’s decision “simply the wrong choice in a possibility space where much better options would have been available.”
Trudeau, who is set to remain prime minister until his Liberal Party elects a new leader in March, has warned Canadians that difficult economic times lie ahead due to the trade war with the U.S.
In an attempt to prevent the tariffs, Trudeau traveled to Mar-a-Lago in November to meet with Trump, then president-elect, to negotiate a resolution.
The visit drew criticism from Canadian political observers who viewed it as a sign of weakness.
Trump ultimately moved forward with the tariffs, dealing a significant blow to Canada’s economic stability.
With Canada set to hold elections in October, the trade war’s economic consequences could play a key role in shaping the country’s political future.
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