Canadian Prime Minister Justin Trudeau has condemned Donald Trump’s new 25% tariffs on Canadian and Mexican imports, calling them a “very dumb thing to do” and vowing a “relentless fight” to protect Canada’s economy. In response, Canada announced retaliatory tariffs on $107 billion worth of U.S. goods, with additional measures set to take effect in three weeks. Trudeau accused Trump of trying to “collapse” Canada’s economy for potential annexation, stating that Canada “will never be the 51st state.”

Trump defended the tariffs as a move to protect U.S. jobs and combat illegal migration and drug trafficking, but Trudeau dismissed fentanyl-related claims as baseless. Mexican President Claudia Sheinbaum also rejected the tariffs and promised countermeasures.

Experts warn that the trade war could drive up prices, threaten North American supply chains—especially in the auto industry—and lead to job losses. Ontario Premier Doug Ford has suggested cutting electricity exports to U.S. states and banning U.S. companies from provincial contracts, while Canada is also removing U.S.-made liquor from stores.

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China, also hit with a tariff increase to 20%, has pledged to fight back, escalating global trade tensions.

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