OTTAWA 鈥� U.S. President Donald Trump remained resolute about using tariffs to fill America's coffers hours after starting a North American trade war that rattled markets and was described by Canadian Prime Minister Justin Trudeau as "very dumb."
"Tariffs are about making America rich again and about making America great again 鈥� there will be a little disturbance, but we're OK with that," Trump said during a marathon address to a joint session of Congress Tuesday evening.
Trudeau earlier Tuesday called Trump's imposition of a 10 per cent tariff on Canadian energy and 25 per cent tariffs on all other goods "a very dumb thing to do."
During an Ottawa news conference, Trudeau said Canada was forced to fight back. Ottawa is immediately introducing 25 per cent retaliatory tariffs on $30 billion worth of American products. It will expand to another $125 billion in U.S. goods in 21 days.
Trump responded on Truth Social, the media platform he owns, by threatening even more tariffs on Canada.
"Please explain to Governor Trudeau, of Canada, that when he puts on a Retaliatory Tariff on the U.S., our Reciprocal Tariff will immediately increase by a like amount!" Trump wrote, citing his repeated claim that Canada would be better off if it becomes a U.S. state.
Trudeau's comments addressed the growing belief among Canadians that Trump's tariffs are not connected to fentanyl and border security 鈥� as was cited in the executive order that put duties in force.
Trudeau said Canadian efforts on the border have been "well received" by American officials and Trump has lost his legal pretext for starting an "unjustified" trade war.
"The one thing (Trump) 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," Trudeau said, adding Canada will never become a U.S. state.
Trudeau said the federal government will support Canadians through measures like enhancing employment insurance "no matter the cost."
Trump gave substantiation to Canadian concerns in earlier posts on Truth Social Tuesday. Trump claimed there would be no tariffs on companies that move their operations to the U.S. and repeated false accusations that American banks can't operate in Canada. He did not mention fentanyl.
Trudeau said Canada will file claims against the levies with the World Trade Organization and through the Canada-U.S.-Mexico Free Trade Agreement.
The president waded into American imperialism during his speech Tuesday by referencing Greenland 鈥� another repeated target of annexation.
"One way or the other we are going to get it," Trump told American lawmakers.
A possible off-ramp from damaging duties was floated by a key member of Trump's team after a tumultuous day on Wall Street. Just after the markets closed, Commerce Secretary Howard Lutnick said Trump may amend the tariffs Wednesday, but it was unclear what he was considering.
"None of that pause stuff 鈥� but I think he's going to figure out, 'You do more and I'll meet you in the middle some way,'" Lutnick told Fox Business.
Lutnick's comments followed a phone call with Ontario Premier Doug Ford. At a news conference, Ford warned New York, Michigan and Minnesota that he would apply a 25 per cent surcharge on energy exports if the tariffs persist. The premier's office said Lutnick asked Ford to back down 鈥� but Ford refused if the tariffs remained.
Lutnick also spoke with Finance Minister Dominic LeBlanc on Tuesday.
Tariffs shook stock markets on both sides of the border. As of Tuesday, all gains seen on the S&P 500 since election day in the U.S. were wiped out. Major indexes in the U.S. faced a roller-coaster and the S&P/TSX composite index 鈥� Canada's benchmark stock index 鈥� took a sharp hit.
The market reaction could signal what the Trump administration will face as it attempts to implement the president's growing tariff agenda.
Trump plans to implement 25 per cent tariffs on all steel and aluminum imports on March 12. He signed an executive order to implement "reciprocal tariffs" starting April 2. Other tariff targets include automobiles, copper, lumber and agricultural products.
Premiers across the country announced additional responses to Trump's trade war. Multiple provinces began pulling American products from liquor store shelves.
Quebec Premier Fran莽ois Legault said his province will impose penalties on U.S. companies that bid on provincial government contracts, while Ford said Ontario would ban American companies from bidding on provincial contracts altogether.
Alberta Premier Danielle Smith said in a social media post that she supports the federal government's approach.
Conservative Leader Pierre Poilievre said the federal government should have done more to fight fentanyl trafficking and to secure the border without pressure from Trump.
He said Canada should fast-track pipeline projects and remove "all red tape" on homebuilding. Poilievre added the government should treat counter-tariffs as a means to reduce taxes.
"The obvious place to start is to get rid of the Liberal carbon tax, then axe the sales tax on new homes. We need to reverse the Liberal capital gains tax hike and slash income tax so that hard work pays off," Poilievre said.
NDP Leader Jagmeet Singh said he wants Parliament recalled to pass emergency supports for workers, even if it means delaying an anticipated federal election.
The House of Commons is scheduled to reconvene on March 24 and the Liberals will select a new leader on Sunday.
The perceived front-runner for the Liberal leadership, former central banker Mark Carney, has not ruled out calling a snap election, but said it would depend on the tariff situation.
Trump's talk of annexation and duties has driven rising patriotism across Canada, with people putting together "buy Canadian" lists and sports fans booing The Star Spangled Banner.
Trudeau encouraged Canadians to stick together.
"Canada remains the best country in the world," Trudeau said.
鈥� With files from Kelly Geraldine Malone in Washington, Lauren Krugel in Calgary, Catherine Morrison and Craig Wong in Ottawa and The Associated Press.
This report by The Canadian Press was first published March 4, 2025.
David Baxter, The Canadian Press
