TL;DR:

Shopify’s CEO Tobi Lutke criticized Prime Minister Justin Trudeau’s response to a trade war sparked by U.S. President Donald Trump’s 25% tariffs on Canadian exports. Lutke believes these U.S. demands align with Canadian interests and criticizes Trudeau’s retaliatory tariffs as harmful, given the economic reliance on the U.S. With Canadian elections approaching, the trade conflict significantly influences political and economic discussions.

Synopsis:

The CEO of Canada’s second-largest publicly traded company, Shopify, has criticized Prime Minister Justin Trudeau’s handling of a trade war initiated by U.S. President Donald Trump. Trump has imposed a 25% tariff on Canadian goods, citing issues like the fentanyl crisis and illegal immigration. Tobi Lutke, Shopify’s CEO, believes that the U.S. demands are reasonable and align with what Canadians want their government to address, despite coming from a controversial source like Trump. Lutke criticizes Trudeau’s retaliatory tariffs on U.S. goods, arguing they harm more than help Canada, given its economic dependency on the U.S. Approximately 75% of Canadian exports go to the U.S. In contrast, only 13% of American exports are sent to Canada, so the tariffs may disproportionately affect Canada. Trudeau, facing political pressure, attempted to negotiate with Trump but failed to prevent the tariffs, leading to criticism at home for appearing weak. Trump has acknowledged potential short-term pain from the tariffs but believes they are necessary for long-term gain, further adding that the U.S. subsidizes Canada excessively. The economic tension may exacerbate domestic challenges in Canada, such as inflation and potential increases in utility costs for Americans and Canadians alike. Trump also provocatively suggested Canada could become a U.S. state to avoid tariffs, a notion that has been firmly rejected by Canadian leadership. As Canada faces elections in October, the handling of this trade conflict is a prominent issue affecting Trudeau’s political future and the country’s economic outlook.