Shopify CEO defends Trump’s tariffs on Canada, slams Trudeau for ‘hitting back’

Lütke, who co-founded the Canadian e-commerce giant, blamed Trudeau in a thread for failing to prevent the escalating trade war. "I’m disappointed that trump admin placed the 25% tariffs. I’m disappointed that this is our governments response. I love Canada and want it to thrive. I built Canada’s biggest tech company here because I know it’s a special place. Canada thrives when it works with America together. Win by helping America win. Trump believes that Canada has not held its side of the bargain, and he set terms to prove that we still work together: get the borders under control and crack down on fentanyl dens."

He continued, "These are things that every Canadian wants its government to do, too. These are not crazy demands, even if they came from an unpopular source. These tariffs are going to be devastating to so many people’s lives and small businesses. Action has to be judged based on what it leads to, not how good it sounds or feels."

In a separate thread ahead of the weekend, Lütke wrote, "This would be a disaster. Canada wins by helping America win. The tariffs are avoidable. Secure the border and do a better job on cracking down on drugs."

"What trump is asking Canada to do are exactly entirely reasonable things that all Canadians also should want. I get that some people dislike trump but this absolutely does not mean he is not right," He added, "Starting a trade and tariff war that will plunge Canada further into poverty just doesn't make any sense for anyone. Also, I can't speak for everyone, but I'd very much like us to crack down on fentanyl myself! Who doesn't? Play stupid games, win stupid prizes."

Trump signed an executive order on Saturday imposing 25 percent tariffs on nearly all Canadian goods, citing Canada’s failure to meet his demands on addressing illegal immigration and fentanyl trafficking. According to Forbes, in Fiscal Year 2024 "Border Patrol apprehended 23,721 people who illegally crossed the US-Canada border, representing just 1.5% of nationwide Border Patrol apprehensions. In contrast, at the US-Mexico border, Border Patrol reported more than 1.5 million apprehensions in the same year."

Trudeau announced 25 percent retaliatory tariffs on $155 billion worth of US goods and additional measures targeting red states. The Shopify CEO argued that Trudeau’s reaction would only make things worse, suggesting that Canada is not in a position to go head-to-head with the United States in a trade war.

Shopify, which Lütke co-founded in 2006, is Canada’s largest technology company and second only to the Royal Bank of Canada in market value. The company is worth around $150 billion, and Lütke himself has an estimated net worth of $10 billion, making him one of the country’s richest people. He warned that Canada cannot afford the economic consequences of retaliating against the U.S.

"Leadership is about doing what's right, not what is popular. And hitting back will not lead to anything good. America will shrug it off. Canada will decline," Lütke added. "It's simply the wrong choice in a possibility space where much better options would have been available."

Trump’s tariffs include a lower 10 percent rate on Canadian energy products. In 2023, Canadian crude oil accounted for about 24 percent of US refinery production, according to the Energy Information Administration. The move is expected to have widespread economic consequences for Canada’s energy sector.

The trade conflict had been brewing for months. In November, Trudeau traveled to Mar-a-Lago to meet with Trump in an attempt to dissuade the president from imposing tariffs. The visit did not change Trump’s stance.