The CEO of Canada’s second-largest publicly traded company believes that Canadians are in favor of their government doing what President Trump is demanding. He criticized outgoing Prime Minister Justin Trudeau for not preventing the trade war.
President Trump, 78, recently signed an executive order imposing 25% tariffs on Canada, citing their failure to meet his demands regarding the fentanyl and illegal immigration trade.
“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,” said Tobi Lutke, the co-founder of Shopify.
Lutke expressed that these demands are reasonable and essential for Canadians as well. He emphasized that the tariffs imposed will negatively impact many lives and small businesses.
Lutke’s response was triggered by Trudeau’s announcement of retaliatory tariffs on US goods and the push for policies targeting red states.
Shopify, founded in 2006 by Lutke, is valued at approximately $150 billion, making it Canada’s largest tech company. Lutke, with an estimated net worth of $10 billion, is one of Canada’s wealthiest individuals.
“Leadership is about doing what’s right, not what is popular. Hitting back will not lead to anything good. America will shrug it off. Canada will decline,” Lutke expressed regarding Trudeau’s planned retaliation.
Trudeau has warned Canadians about tough times ahead due to the ongoing trade war with the US.
Canada was the largest overall trading partner of the US in 2023, with over $900 billion in goods and services exchanged between the two countries.
The latest on President Trump’s tariffs
The tariffs are expected to significantly impact Canada as about 75% of its exports go to the US, while only 13% of American exports go to Canada.
Trump’s tariffs also include a lower 10% tariff rate on energy resources, affecting Canadian crude oil exports that accounted for approximately 24% of US refinery production in 2023.
Trudeau, 53, is set to remain as PM until his Liberal Party elects a new leader in March. He previously met with Trump in an attempt to prevent the tariff threat from becoming a reality.
Trump acknowledged that the tariffs may cause some pain but believes it will be worth it. He also expressed his views on the US subsidizing Canada and suggested that Canada should become the 51st state with lower taxes, better military protection, and no tariffs.
Trudeau and other Canadian leaders have rejected the idea of Canada becoming a US state. Canada is preparing for elections in October.
