Economic Fallout: Trade War Consequences

The economies of Canada and the United States are on a collision course. On Saturday, U.S. President Donald Trump signed off on 25 per cent tariffs to be imposed on all Canadian goods, beginning February 4. In response, Prime Minister Justin Trudeau levelled tariffs back toward the U.S., warning that “the coming weeks will be difficult for Canadians and they will be difficult for Americans.” The trade war effectively transforms a decades-long economic partnership, with serious implications for millions of workers.

Jason Kirby is reporter for The Globe and Mail and Report on Business section. He breaks down the details of the tariffs, what it will mean for major industries and why this fight will likely send Canada into a recession.

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