Shopify CEO Lütke says Canada’s tariff response ‘the wrong choice’

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The head of one of Canada’s largest companies has criticized the federal government’s decision to impose retaliatory tariffs on the United States, saying the move is “simply the wrong choice” and that better options were available.

Shopify Inc. founder and chief executive Tobi Lütke wrote in a post on X on Saturday that he is disappointed by the decision of U.S. President Donald Trump to impose 25-per-cent tariffs on Canadian goods. But he is also “disappointed” in Canada’s response, and appeared to take at face value Mr. Trump’s insistence that he is punishing the country with tariffs because of lax border controls and fentanyl smuggling.

“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,” Mr. Lütke wrote. “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.”

Shopify did not immediately respond to a request for comment.

Mr. Lütke, who is worth some US$10-billion, according to Bloomberg, is the rare example of a major public company CEO speaking out about Canada’s tariff response. Shopify is the second-most valuable company on the Toronto Stock Exchange, after Royal Bank of Canada.

Chris Pavlovski, a Canadian who founded video-sharing site Rumble, agreed with Mr. Lütke’s take. “Canada should have de-escalated and not retaliated,” he wrote in reply.

Other Shopify executives have weighed in, too. “Canada has turned a blind eye to being used as a training ground for foreign countries, gangs and terrorist groups,” wrote Kaz Nejatian, the company’s chief operating officer. “Everyone knows Canada cannot maintain high tariffs on the United States for long. The solution is simple: secure the border, deport the criminals, and make Canadian citizenship mean something again.”

Canadian officials have stressed to their U.S. counterparts that illegal migration and fentanyl shipments from Canada to the U.S. are minuscule compared to activity at the Mexico-U.S. border. Ottawa has also announced $1.3-billion for new border security measures.

Mr. Trump signed an executive order imposing 25-per-cent tariffs on Canadian goods and a 10-per-cent tariff on energy products, starting Tuesday. The Liberal government responded Saturday with a 25-per-cent levy on $30-billion worth of American products, and is prepared to impose tariffs on another $125-billion in American imports.

After Canada’s announcement of retaliatory tariffs, Mr. Trump posted a statement on Truth Social that made no mention of the border or fentanyl. “We pay hundreds of Billions of Dollars to SUBSIDIZE Canada,” he wrote. “Therefore, Canada should become our Cherished 51st State.”

Other CEOs have made public comments supportive of striking back. “Canada has announced retaliatory measures, as it must,” said Loblaw CEO Per Bank on Sunday. “Canada must fight hard to protect the interests of all Canadians.”

Charles Emond, head of pension fund Caisse de dépôt et placement du Québec, also backed a strong response during an interview with Montreal radio station 98.5-FM. “It’s time to play with our elbows up,” he said before Canada had received confirmation of the tariffs. “That’s a language they’ll understand.”

Canada’s opposition parties issued similar messages. Conservative Leader Pierre Poilievre has called for “dollar-for-dollar tariffs” on U.S. goods, among other measures.

With a file from Irene Galea