The chief executive of Shopify Inc (TSX:SH., NYSE:SHOP) has come out in defence of President-elect Donald Trump's plans for tariffs on neighbors, but said they will be "incredibly painful" for Canada.
Trump doubled down on his previous trade proposals, confirming via a post on his Truth Social platform that he plans a 25% tariff on goods from Mexico and Canada come his first day in office at the start of next year.
The winner of the Presidential election earlier this month said he would "sign all necessary documents to charge [a tariff] on all products coming into the United States, and its ridiculous open borders".
Canada's TSX stocks benchmark fell 0.4% and Mexico's IPC dropped 0.5%, while stock markets in Asia and Europe also were sent into the red.
Tobi Lutke, CEO of Ottowa-based Shopify, said: "Yes this is harsh, but the US is well within its rights to demand this. They want the border to be a border."
Noting that Canada has two month's notice to implement these demands, adding, "if these tariffs hit, it would be incredibly painful for Canadians".
Yes this is harsh, but the US is well within its rights to demand this. They want the border to be a border.
Canada has 2 months notice to implement these demands. If these tariffs hit, it would be incredibly painful for Canadians. pic.twitter.com/mhunaRgPBe
— tobi lutke (@tobi) November 26, 2024