‘Stupid Trade War’: How Trudeau Fired Back at Trump's Tariffs

The tense relationship between US President Donald Trump and Canada has raised many questions, especially in light of Trump's hostile economic policy against his northern neighbor, which includes imposing harsh tariffs on all its imports, in a scene that the relation between Washington and Ottawa has not witnessed for decades.

Doubts have grown in Canada about the real motives behind Trump's repeated targeting of relations between the two countries, while he does not hesitate to publicly express his love for Canada and its people, in positions that contradict his actions towards the country.

Some see the love-hate relationship that brings Trump together with Canada as a settlement of personal interests after the failure of his hotel projects there, while others link it to the tension in his relationship with its outgoing Prime Minister Justin Trudeau.

In turn, Trudeau, who is stepping down this week, said Trump's tariffs on Canadian imports were a very dumb thing to do, accusing him of wanting to ruin the Canadian economy.

The comments come amid growing tensions between the U.S. and Canada over trade and security, with Washington accusing Ottawa of not doing enough to combat fentanyl smuggling.

Canada, meanwhile, has sought to negotiate an end to the trade war with the Trump administration, while filing a complaint over the steep tariffs with the World Trade Organization.

According to Bloomberg, Canada is the largest buyer of American-made goods, and vice versa.

Punitive Tariffs

The trade war launched by US President Donald Trump reached a new level on March 4, as Canada, Mexico and China retaliated against Washington’s punitive tariffs.

The new tariffs imposed by the US government are expected to make cross-border goods, from avocados to T-shirts and cars, much more expensive.

Goods imported from Mexico and Canada are now subject to a 25% tariff, while Canadian fuel will be subject to a 10% tariff.

According to data, the tariffs cover a total of $918 billion in goods from the two countries, which will have a real impact on the US economy.

Defending the move, Trump said Canada and Mexico should build their factories in the United States if they want to avoid the tariffs.

He noted that the revenues from the increased tariffs will be used to rebalance the US trade balance, finance tax cuts for US citizens, and enhance respect for US partners.

On March 5, Canadian Prime Minister Justin Trudeau announced that his country would impose tariffs on US imports, especially meat, eggs, fruits and wine, in response to Trump’s imposition of a similar measure, stressing that there is no justification for these US measures.

He described the US decision to increase tariffs on Canadian goods as stupid, stressing that it will harm the economies of both countries and the wallets of Americans in particular.

He warned, in a statement, that if the US tariffs go into effect, Canada will immediately respond by imposing 25% tariffs on US imports worth $30 billion.

He pointed out that a second round of tariffs at the same rate will be imposed on products worth $155 billion in three weeks, a list that will include expensive goods such as cars, trucks, steel and aluminum.

Trudeau considered that Trump's goal was to cause the collapse of the Canadian economy to make the process of annexation easier, stressing that the fentanyl pretext that the US president clung to justify imposing tariffs was completely unjustified.

He stressed that Ottawa will not back down, pledging its victory in the face of Trump's stupid decision.

In its stores, in response to the United States imposing tariffs on Canadian products.

Later, Trump threatened Canada with imposing additional tariffs on its goods, if it responded to the tariffs he imposed with retaliatory tariffs.

Trade War

In a new reversal of his decisions, Trump announced on March 6 the suspension of most of the tariffs he had recently imposed on imports from Mexico.

Trump said the new tariffs will not be imposed on imports included in the framework of the trade agreement between the U.S., Canada and Mexico, noting that this agreement is in effect until April 2.

Trump also signed a decree expanding the scope of the exemption to include a portion of Canadian imports while reducing the tariffs imposed on potash, which is used as fertilizer on American farms, from 25% to 10%.

While Canada is getting at least a temporary break from a universal tariff that was supposedly tied to fentanyl and the border, Trump recently said he is pressing ahead with a previously announced 25% tariff on all steel and aluminum imports next week. Canada is the leading exporter of both metals to the U.S.

Those more targeted tariffs are a major concern for Canada, given the last time Trump imposed similar tariffs on those metals there was a huge drop in Canadian exports, threatening jobs and businesses. 

Trump also signaled there is trouble on the horizon for Canada's auto sector, which got a reprieve from Trump's tariffs yesterday. He said there will be no exemptions for Canadian and Mexican autos next month.

Commenting on the matter, Trudeau said that this is a promising sign, but he stressed that his country will remain in a trade war with the U.S. despite the temporary exemptions, indicating that the goal is to eliminate all tariffs.

Trudeau’s statement came after a call he had on March 5 with the US President, who considered Canada's efforts to limit the flow of immigrants and fentanyl into his country insufficient.

In line with his election promises, Trump is moving towards abandoning the free trade policies that the U.S. followed for decades after World War II, considering that these policies caused the loss of millions of jobs in the manufacturing sector.

Trump sees imposing tariffs as the appropriate tool to protect the American economy and enhance national prosperity, despite warnings from economic experts who confirm that these measures will lead to higher costs and slower economic growth.

In his first address to Congress since returning to the White House, Trump said “the tariffs he has imposed on several countries may cause some disruption to our economy, but that we are happy with that.”

He also said that the U.S. will impose similar tariffs on its trading partners next month, promising that these tariffs will generate trillions of dollars in revenue and create jobs.

Trump's Preferred Policy

In 2018, following the G7 summit in Quebec, Trump heckled Trudeau, accusing him of being very dishonest and weak and of making up false statements.

After returning to office for a second time, Trump made clear that the deal he signed in 2020 with Canada did not achieve the United States’ goals and should be rewritten.

This action reveals the fragility of Trump’s economic partnerships with his neighbors and the possibility that they will be modified from time to time.

Trudeau’s relationship with Trump has deteriorated in recent weeks to an unprecedented degree after the US president repeatedly talked about Canada becoming the 51st state, and mockingly referred to Trudeau as its governor rather than its prime minister.

Trump says he is unhappy with the trilateral US-Mexico-Canada trade agreement he signed in his first term, while Trudeau has downplayed the idea of opening talks before a review scheduled for 2026.

Economists have said Canada, which sends 75% of all exports to the U.S., will slide into recession unless tariffs are lifted quickly.

They estimated that Trump’s tariffs on Canada would shave between 2 and 4% points off the country’s GDP growth, as well as pushing inflation above the 2% target, compared with January’s annual rate of 1.9%.

In turn, Trudeau said Americans would suffer, too, given how closely the two economies are interconnected.

He pointed to a Wall Street Journal editorial in late January that said Trump would start the dumbest trade war in history if he went ahead with the tariffs.

Trudeau said last month that Trump’s talk of annexing Canada was real, and linked to the country’s rich natural resources, including nickel, copper, lithium, cobalt, gold and silver.

On his part, analyst Mustafa Shaheen told Al-Estiklal that there is a swing between economic and personal interests that dominates Trump's relationship with Canada.

He pointed out that “Canada is a major trading partner of the U.S., and that the two countries have deep economic relations, but Trump believes that this partnership is unequal, and that Ottawa is reaping more benefits than Washington; therefore he is seeking to correct the course through new agreements.”

Mr. Shaheen also pointed out that the personal factor cannot be ignored either, as the tense relationship between Trump and Trudeau plays a role in fueling the differences, noting that there are still hopes pinned on the arrival of a new Canadian Prime Minister who may have a more friendly relationship with Trump.