Re-Escalating Trade War Puts Canada’s Economic Rebound at Risk: Economists
Economists say the new duties could cut growth by 0.5 percentage point and push Canada closer to recession if Ottawa retaliates.
- Over the weekend, the United States imposed 50 percent tariffs on roughly $28 billion worth of Canadian goods after trade talks collapsed on Friday.
- Before negotiations imploded on Friday, Canada's economy showed signs of rebounding, though new duties targeting cement, honey, alcohol, and textiles now threaten roughly five percent of Canadian exports to the United States.
- Bradley Saunders, economist at Capital Economics, estimates Canada's effective tariff rate nearly doubled to 5.6 percent from 2.9 percent previously; businesses are now restraining investment amid North American trade uncertainty.
- Prime Minister Mark Carney pledged to retaliate with dollar-for-dollar tariffs starting Sept. 8, though BMO senior economist Robert Kavcic warned growth pressures may offset inflation risks from the trade war.
- President Donald Trump threatened Monday to impose 50 percent tariffs on autos and parts starting Jan. 1, 2027, raising recession concerns if the United States escalates further attacks on Canada.
34 Articles
34 Articles
U.S. trade war sparks economic concern in Canada
A re-escalation in Canada's trade war with the United States could have implications for economic growth and consumer prices. University of Calgary economics professor Trevor Tombe says renewed uncertainty could be the biggest consequence.
'Canada is a state…': Vance makes shocking Ottawa 'gaffe', calls it 'Freudian slip'
Vice President J.D. Vance accidentally called Canada a state Monday as he answered a question about the country’s trade dispute with the US. The admitted Freudian slip came just hours after President Trump declared in a social media post that “Canada will be treated like a state no longer” because it is not doing enough business with the U.S. He announced that effective Jan. 1, tariffs on Canadian cars, trucks, auto parts and steel will increase…
Canada's Trade Fight With Trump Is Getting Costlier. Nearly 90,000 Jobs Could Be At Risk In The Country.
Ottawa is preparing dollar-for-dollar retaliation after trade negotiations with Washington collapsed, while a new threat to raise tariffs on Canadian vehicles could widen the dispute further.
Winnipeg Free Press
Re-escalating trade war puts Canada's economic rebound at risk: economists
OTTAWA - Economists are warning that a re-escalation in the trade war with the United States puts Canada's burgeoning economic recovery at risk.
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