Trudeau: Trump Aims to 'Collapse the Canadian Economy'

Canadian Prime Minister Justin Trudeau accused President Donald Trump of seeking to "collapse the Canadian economy" following the imposition of U.S. tariffs on Canada, The New York Times reported.

Speaking to reporters in Ottawa, Trudeau dismissed Trump's justification for the tariffs, fentanyl, as "completely bogus, completely unjustified, completely false" and said Trump's true objective is to weaken Canada to the point of annexation.

During two phone calls between Trump and Trudeau on Feb. 3, Trump questioned the validity of the U.S.-Canada border and suggested revisiting shared water agreements. According to four anonymous sources familiar with the discussions, he raised concerns over Canada's dairy industry, banking regulations, and consumption taxes.

Trump also questioned the legitimacy of the 1908 treaty that defined the U.S.-Canada border and expressed a desire to renegotiate it.

His comments and previous statements about using "economic force" against Canada led Canadian officials to take his words seriously.

The calls between the two leaders resulted in a temporary one-month postponement of the tariffs.

However, on Tuesday, the U.S. implemented the measures without delay, prompting Canada to retaliate with its tariffs on American exports. Two days later, Trump granted Canada a suspension on most tariffs for another month.

Concerns about Trump's intentions have been building for months. The Toronto Star reported that Trump referenced the 1908 border treaty in his February calls, while the Financial Times revealed discussions within the White House about removing Canada from the Five Eyes intelligence alliance, which includes the United Kingdom, Australia, and New Zealand.

Following the Feb. 3 conversations, Commerce Secretary Howard Lutnick, whom the Senate had not yet confirmed, informed Canadian Finance Minister Dominic LeBlanc that Trump believes many U.S.-Canada agreements could be easily abandoned and is interested in doing just that.

Lutnick outlined Trump's considerations, including withdrawing from the Five Eyes intelligence-sharing group, dismantling Great Lakes water agreements, and reexamining military cooperation under the North American Aerospace Defense Command. Subsequent conversations between senior officials repeatedly raised these topics, further deepening Canadian concerns.

Canadian officials remain unsettled despite assurances from Secretary of State Marco Rubio, who has refrained from issuing threats and downplayed any changes in military cooperation. The broader political landscape in Canada reflects growing unease, with many viewing Trump's actions as a deliberate shift in U.S.-Canada relations.