Janice R. Andrews
Canadian Billionaire Tobi Lutke Criticizes Trudeau’s Tariff Response
In a sharp rebuke of outgoing Canadian Prime Minister Justin Trudeau, billionaire Tobi Lutke, co-founder of Shopify, has criticized the government’s decision to impose retaliatory tariffs following U.S. President Donald Trump’s new trade measures. The development has stirred significant debate in both political and business circles, as Canada braces for the economic ripple effects of escalating trade tensions.
Trudeau’s Retaliatory Tariffs Spark Controversy
Trudeau announced on Sunday that Canada will slap tariffs on $107 billion worth of U.S. goods, a direct response to the Trump administration’s decision to implement 25% tariffs on Mexican and Canadian goods and 10% on Chinese products. These tariffs, effective from Tuesday, threaten to disrupt over $2.1 trillion in annual trade between the U.S. and its key trading partners.
Despite Trudeau’s firm stance, Lutke publicly voiced his disappointment on social media platform X, criticizing both Trump’s initial tariffs and the Canadian government’s retaliatory response.
“I’m disappointed that [the] Trump admin placed the 25 percent tariffs,” Lutke posted. “I’m disappointed that this is our government’s 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.”
A Call for Cooperation Over Confrontation
Lutke emphasized the importance of Canada maintaining a cooperative relationship with the U.S., asserting that both nations benefit most when working together.
“Canada thrives when it works with America together. Win by helping America win,” Lutke stated. “Trump believes that Canada has not held its side of the bargain, and he set terms to prove that we still work together: get the borders under control and crack down on fentanyl dens. These are things that every Canadian wants its government to do too.”
Lutke argued that retaliatory tariffs would harm small businesses and everyday Canadians more than they would affect the U.S. economy.
“These tariffs are going to be devastating to so many people’s lives and small businesses,” he warned. “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.”
The Economic Stakes
Shopify, founded by Lutke in 2006, has grown into Canada’s largest tech company, valued at approximately $150 billion, and ranks as the country’s second-largest company after the Royal Bank of Canada. Lutke, with an estimated net worth of $10 billion, is among Canada’s wealthiest individuals, making his critique particularly influential within the business community.
Trump’s tariffs include a 10% levy on all energy imports from Canada, a significant blow given Canada’s role as America’s largest foreign supplier of crude oil. Trump defended his decision, claiming the tariffs would generate substantial revenue and revitalize American manufacturing.
“These tariffs will bring a tremendous amount of money in for our country and bring a rebirth in American manufacturing,” Trump asserted.
Trudeau Defends Canada’s Position
Trudeau acknowledged the potential hardships posed by the tariffs but framed Canada’s response as necessary to protect national interests.
“Tariffs against Canada will put your jobs at risk, potentially shutting down American auto assembly plants and other manufacturing facilities,” Trudeau said during a press conference in Ottawa. “They will raise costs for you, including food at the grocery store and gas at the pump.”
Canada’s countermeasures target a range of American products, including beer, wine, bourbon, fruits, juices, clothing, sports equipment, and household appliances. Trudeau expressed hope that the economic pressure would prompt the U.S. to reconsider its trade policy.
Trump’s Provocative Statements
In typical fashion, Trump took to his Truth Social platform to double down on his stance, suggesting drastic changes to the U.S.-Canada relationship.
“We pay hundreds of billions of dollars to SUBSIDIZE Canada. Why? There is no reason. We don’t need anything they have,” Trump wrote. “Canada should become our cherished 51st state. Much lower taxes and far better military protection… AND NO TARIFFS.”
Later, Trump hinted at possible future tariffs on the European Union and the United Kingdom if they fail to increase purchases of American oil and gas.
“The UK is way out of line and we’ll see,” Trump said. “The European Union, it’s an atrocity what they’ve done.”
Global Trade Tensions Escalate
Trump indicated plans to speak with Canadian and Mexican leaders, stating he expects significant concessions in exchange for lifting the tariffs.
“They have to balance out their trade, number one. They’ve got to stop people from pouring into our country, and we’ve stopped it. They haven’t stopped it,” Trump told reporters. “They have to stop people pouring in, and we have to stop fentanyl. And that includes China.”
When questioned about potential responses to Canada’s retaliatory tariffs, Trump suggested he was open to further escalation.
“It’s been a one-way street,” he claimed. “We subsidize Canada to the tune of about $200 billion a year, and for what? What do we get out of it? We don’t get anything out of it.”
Business Community Reacts
Lutke’s comments have resonated with many in the business community, who fear that escalating tariffs will stifle growth, increase costs, and create uncertainty in key industries.
“A trade war is simply the wrong choice in a possibility space where much better options would have been available,” Lutke concluded.
As the situation unfolds, Canadian businesses and consumers brace for the impact of these policy decisions, hoping for a swift resolution that prioritizes economic stability and growth.
