Canadian Prime Minister Justin Trudeau says Canada will not back down in response to Donald Trump’s “trade war,” which has imposed 25% tariffs on nearly all Canadian goods.

“Trump is trying to cause Canada’s economic collapse in the hopes that it will make annexation easier,” Trudeau told a news conference in Ottawa. “But we are prepared to pay any price to protect our country.”

Canada has already imposed retaliatory tariffs on C$30 billion worth of U.S. goods and is preparing an additional C$125 billion if Trump does not back down. Other economic measures are being considered in addition to tariffs.

Trudeau slammed Trump for his “stupid” and “unreasonable” attack on Canada, warning that it would drive up prices and cost jobs on both sides of the border.

“Donald, you’re a smart man, but this is a stupid thing to do,” Trudeau told the US president, citing a Wall Street Journal article that called Trump’s trade policies misguided.

The prime minister also rejected claims that the tariffs were linked to the flow of fentanyl, calling them “legal cover” for violating the CUSMA trade agreement. He stressed that Canada has already beefed up its border controls, spending $1.3 billion to combat drug trafficking.

Instead of strengthening relations with allies, the US is moving closer to the “lying, murderous dictator” Vladimir Putin, Trudeau said.

Retaliation from Canadian provinces

Ontario Premier Doug Ford backed Trudeau, saying he would “fight like never before.” He is considering an export tax on electricity shipped to the US, as well as potentially cutting off power to 1.5 million American customers.

“Trump must pay a price at the polls,” Ford said, calling on Republican members of Congress to stand up to the president.

Alberta Premier Danielle Smith called Trump’s actions a “betrayal” and warned that the tariffs would drive up oil and gas prices for Americans, as the U.S. relies on Canadian oil.

Political fallout

Conservative leader Pierre Poilievre called the tariffs a “stab in the back” from the U.S. and vowed to “fight for Canada.” He also stressed that he is not a Trump supporter: “I am not a MAGA, my job is to protect Canada.”

NDP leader Jagmeet Singh called for an emergency meeting of Parliament to pass measures to support workers.

Meanwhile, U.S. Vice President J.D. Vance said that “Canada is not taking fentanyl seriously enough,” despite a 97% reduction in its supply thanks to new security measures.

Economic fallout

Economists warn that a full-scale trade war could push Canada into recession. Bank of Canada expects 'grave consequences' if tariffs remain in place.

Canadian business associations warn of 'irreparable damage' to auto and oil and gas sectors. 'Canada must urgently reorient its economy,' says Canadian Petroleum Producers president.

Despite crisis, Trudeau urges citizens not to give up: 'Canada remains the best country in the world.'