Trump's tariffs just kicked off a trade war with Canada, and Shopify (NYSE:SHOP) CEO Tobi Lutke isn't holding back. After Trump slapped a 25% tariff on Canadian goods and 10% on energy exports, Trudeau hit back with levies on $155 billion worth of U.S. imports. Lutke, whose e-commerce giant is Canada's second-largest publicly traded company, called it the wrong choice, arguing that Canada should have de-escalated instead. His take? Trump's demandsstricter border control and a crackdown on fentanylaren't unreasonable: "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"

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This could get ugly fast. The U.S. buys 75% of Canada's exports, making the country extremely vulnerable to trade disruptions. While some CEOs, like Loblaw's Per Bank, support fighting back, Lutke warns that Canada will take the bigger hit while the U.S. shrugs it off. And Trump isn't backing downhe just doubled down on Truth Social, claiming America doesn't need anything from Canada and floating the idea that it should become the 51st state. Meanwhile, Trudeau's government is pouring $1.3 billion into border security, but with elections looming in October, the political and economic fallout is still unfolding.

For investors, this isn't just noiseit's a major risk factor. Supply chains are now in limbo, costs for Canadian manufacturers are about to rise, and uncertainty is creeping into the markets. Shopify stock and other Canadian equities are on watch as traders digest the long-term impact. With Trump betting that Canada will blink first, all eyes are now on how businesses and policymakers play their next move.