The Big Story

Countdown to tariffs: how much is it going to cost you?

Feb 26, 2025

Trevor Tombe, an economist from the University of Calgary, joins the discussion on the impending tariffs proposed by President Trump and their potential impact on Canada. He dives into how these tariffs could trigger a wave of economic repercussions, including job losses and rising consumer prices. Tombe also explains how the Canadian dollar might suffer in value amid this turmoil. The conversation highlights the intricate relationship between U.S. and Canadian economies, challenging common perceptions about trade deficits.

20:02

Creator website

Episode guests

Trevor Tombe

AI Summary

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

The proposed 25% tariff on Canadian goods could lead to a recession, significantly impacting household incomes by approximately $2,000 annually.

The manufacturing sector could face severe job losses ranging from 600,000 to a million, disproportionately affecting workers in trade-reliant industries.

Deep dives

Economic Impact of Tariffs

The imposition of a 25% tariff on Canadian goods is poised to have significant repercussions for the Canadian economy, potentially leading to a recession. Estimates suggest that if the tariffs last, the economy could contract by approximately 2.6% to 4% over two years. This contraction would likely result in a rise in unemployment by about three percentage points, bringing it close to 10%. The stark reality for Canadians is that the tariffs could diminish household income by around $2,000 annually, affecting all sectors, but especially those reliant on trade.

Intro

3min

Economic Fallout of Tariffs

7min

Gas Prices and Tariff Complexities in Canada

5min

Impact of Tariffs on the Canadian Dollar's Value

2min

Understanding The Complexity of Canada-U.S. Trade Relations

3min

It’s less than a week to go before U.S. President Donald Trump has promised to put a 25% tariff on all Canadian goods. After that happens, the Government of Canada will respond with tariffs of our own, and everything on which those tariffs apply will get more expensive.

The fears are very real. There are concerns Canada will enter a recession, that the Canadian dollar will take a hit, and that hundreds of thousands of jobs could be on the line.

Host David Smith speaks with University of Calgary economist Trevor Tombe about what it could mean for you and for the economy.

We love feedback at The Big Story, as well as suggestions for future episodes. You can find us:

Through email at hello@thebigstorypodcast.ca

Or @thebigstoryfpn on Twitter