Tariffs Drive Canada Into Recession, Cause Price Spike
Canada's economy is headed for a contraction — the first since the Covid-19 crisis — if a tariff war with its largest trading partner lasts for long. Economists have estimated that President Donald Trump’s tariffs on Canada will shave 2 to 4 percentage points off the country’s gross domestic product growth. The administration imposed levies of 10% on Canadian energy and 25% on all other goods, starting Tuesday.
- As the global economy becomes increasingly interconnected, the ripple effects of a trade war can be far-reaching, highlighting the need for more nuanced international cooperation to mitigate the negative impacts on small businesses and workers.
- Will the Canadian government be able to navigate this economic downturn without succumbing to the temptation of populist rhetoric or relying on outdated protectionist policies?