Tariffs are a very dumb thing to do, Canada’s Trudeau tells Trump as stock markets fall

Tariffs Are a Very Dumb Thing to Do, Canada’s Trudeau Tells Trump as Stock Markets Fall

In a sharp rebuke of former U.S. President Donald Trump’s trade policies, Canadian Prime Minister Justin Trudeau has openly criticized the use of tariffs, calling them “a very dumb thing to do.” Trudeau’s remarks come as global stock markets react negatively to renewed trade tensions between the U.S. and its allies.

Trudeau’s Strong Stand Against Tariff

Trudeau has consistently opposed Trump’s aggressive tariff strategies, particularly those affecting Canadian industries. The former president’s America-first trade policies, which included tariffs on steel, aluminum, and other imports, strained U.S.-Canada relations during his time in office. Now, as speculation grows over Trump’s potential return to power, Trudeau is making it clear that he still views tariffs as counterproductive.

“Tariffs hurt businesses, they hurt workers, and they hurt consumers,” Trudeau stated in a recent press conference. “They don’t make anyone richer—except maybe a few politicians who want to stoke fear and division.”

Market Reaction and Economic Concerns

Following discussions of potential new tariffs, stock markets have shown signs of instability. Investors worry that trade wars could disrupt supply chains, increase costs, and slow economic growth. The Toronto Stock Exchange (TSX) and Wall Street both saw declines as concerns over protectionist policies resurfaced.

Economists have long warned that tariffs often lead to retaliatory measures from affected countries, ultimately harming both sides. Canada, as a major U.S. trade partner, has previously responded to Trump-era tariffs with countermeasures targeting American goods such as whiskey, dairy products, and motor vehicles.

A History of Trade Tension

During Trump’s presidency, U.S.-Canada trade relations hit multiple roadblocks. In 2018, Trump imposed tariffs on Canadian steel and aluminum, citing national security concerns—a move Trudeau denounced as “insulting.” Canada responded with its own tariffs, leading to a trade standoff that only ended when the tariffs were lifted in 2019.

With Trump hinting at a return to the White House in 2024, Trudeau’s comments suggest that Canada is prepared to push back against any renewed trade barriers. “We’ve been through this before,” Trudeau said. “Canada will always stand up for fair trade and our economic interests.”

As political and economic uncertainty looms, businesses and investors are watching closely to see whether Trump’s trade policies will make a comeback. Trudeau’s firm stance against tariffs underscores Canada’s commitment to free trade, but if protectionist policies return to the U.S., another round of economic friction between the two countries may be inevitable.

For now, Trudeau’s message is clear: tariffs are bad for business, bad for workers, and bad for the economy. Whether his warning will influence U.S. policy remains to be seen.