Trudeau blasts 'dumb' Trump tariffs as world markets slump

'What he wants to see is a total collapse of the Canadian economy because that will make it easier to annex us,' said a visibly angry Justin Trudeau.

Tue, 04 Mar, 2025 - 22:39

Rob Gillies

Canadian prime minister Justin Trudeau called American tariffs “very dumb” and said that US president Donald Trump is appeasing Russia while launching a trade war against Canada.

In a blunt news conference during his final days in office, Mr Trudeau said that Canada would plaster retaliatory tariffs on more than $100bn (€94bn) of American goods in response to Mr Trump’s 25% tariffs.

The Trump administration imposed 25% tariffs on imports from Canada — though he limited the levy to 10% on Canadian energy — and Mexico starting yesterday and doubled tariffs against imports from China. All three countries announced retaliatory actions, sparking worries on a slowdown in the global economy.

“Today the United States launched a trade war against Canada, their closest partner and ally, their closest friend,” a visibly angry Mr Trudeau said. “At the same, they are talking about working positively with Russia, appeasing Vladimir Putin, a lying, murderous dictator. Make that make sense.

“What he wants to see is a total collapse of the Canadian economy because that will make it easier to annex us.

That is never going to happen. We will never be the 51st state.”

In a post on Truth Social, Mr Trump said: “Please explain to Governor Trudeau, of Canada, that when he puts on a Retaliatory Tariff on the US, our Reciprocal Tariff will immediately increase by a like amount!”

Meanwhile, US commerce secretary Howard Lutnick told Fox Business yesterday that Mr Trump will reach a middle ground with Canada and Mexico on tariffs, and an announcement to that effect is expected today.

Stocks tumbled around the world. Markets in Europe fell sharply: The Iseq closed the day down 2.3%; while in London, Britain’s FTSE 100 fell from all-time highs; while the midcap index posted its worst day of 2025 as growing trade tensions between the US and its main trading partners hammered global sentiment.

The blue-chip FTSE 100 fell 1.3%, slipping off the previous session’s record close. The midcap FTSE 250 lost 2.1%, posting its biggest percentage drop since August. In Germany, the DAX fell 3.5% as carmakers saw sharp losses, while in Paris, the CAC closed 1.8% down.

The S&P 500 fell 1.2%, with more than 80% of the stocks in the benchmark index closing lower. The Dow Jones Industrial Average slid 1.5%.

The Nasdaq composite slipped 0.4%. The tech-heavy index briefly reached a 10% decline from its most recent closing high, which is what the market considers a correction, but gains for Nvidia, Microsoft, and other tech heavyweights helped pare those losses.

Financial stocks were among the heaviest weights on the S&P 500 index. JPMorgan Chase fell 4% and Bank of America lost 6.3%.

“The markets are having a tough time even setting expectations for what this trade war could look like,” said Ross Mayfield, investment strategy analyst at Baird.

The recent decline in US stocks has wiped out all of the markets’ gains since Mr Trump’s election.