President Donald Trump’s tariffs on imports from Canada are just a bid to ensure the “total collapse” of its economy — and prime it for a U.S. takeover — according to Canada’s prime minister.
“Even the excuse that he is giving today for these tariffs today, of fentanyl, is completely bogus. Completely unjustified,” Prime Minister Justin Trudeau said at a Tuesday press conference. “We actually have to fall back on the one thing he has said repeatedly, that what he wants is to see a total collapse of the Canadian economy.”
“Because that will make it easier to annex us,” he continued, adding “that’s never going to happen.”
Trudeau is referring to Trump’s repeated barbs at Canada, which have included calling him the “governor” of Canada and calling the U.S.’ northern neighbor the 51st state. Trump has also discussed taking over Greenland and Panama.
The U.S. on Tuesday morning issued 25% tariffs on imports of most Canadian goods, slapping a lower 10% tariff on energy products in an effort to keep gas prices more manageable. The country also announced new duties on Mexican and Chinese imports.
The moves have sparked retaliation. Trudeau hit back with a 25% tariff on C$155 billion ($107 billion) worth of American goods, although just C$30 billion ($20.6 billion) worth are immediately impacted. Several premiers have discussed their own measures, with Ontario’s Doug Ford targeting U.S. alcohol and Elon Musk’s Starlink, and planning to issue a 25% tariff on electricity it sends to homes in Minnesota, Michigan, and New York.
According to Trump’s orders announcing his tariffs, the duties are being used to force Canada, Mexico, and China to do more to prevent the flow of undocumented immigrants and illegal drugs through the U.S.’s southern and northern borders. Both Canada and China have accused Trump of using fentanyl as a pretext to threaten them.
Part of Trump’s support of tariffs comes from his belief that they can be used to tighten trade deficits with other nations. He also says tariffs can help push companies to shift production to the U.S., which would take most companies years to pull off.
“If companies move to the United States, there are no tariffs!!!” Trump wrote on his Truth Social on Tuesday.
Trump on Tuesday also criticized Canada’s treatment of American banks, claiming that the nation “doesn’t allow” U.S. banks to do business there. However, 16 U.S.-based bank subsidiaries and branches are operating in Canada as of February, according to the Canadian Bankers Association. They account for about half of all foreign bank assets in Canada.