Trudeau condemns 'dumb' Trump trade war as Canada strikes back

Justin Trudeau has warned that the aim of a "dumb" trade war launched by Donald Trump is to usher in the "complete collapse" of the Canadian economy and make it easier for the US to annex Canada.

- Leyland Cecco Toronto Callum Jones New York

Speaking hours after Trump's administration slapped 25% taxes on Canadian and Mexican goods - and a 10% levy on Canadian energy exports - the prime minister announced retaliatory tariffs on US exports and said his country would remain defiant against the aggression.

Addressing Trump directly, Trudeau said: "Even though you're a very smart guy, this is a very dumb thing to do."

Responding to Trudeau's decision, Trump wrote on Truth Social: "Please explain to governor Trudeau of Canada that when he puts on a Retaliatory Tariff on the US, our Reciprocal Tariff will immediately increase by a like amount!"

Trudeau, who will step down as prime minister after the ruling Liberal party chooses a new leader on Sunday, said the spat between allies is "exactly what our opponents around the world want to see".

"Today the United States launched a trade war against Canada," he said. "At the same time [the Trump administration] are talking about working positively with Russia, appeasing Vladimir Putin, aligning with a murderous dictator."