Impact of Trump Tariffs on Canadian Economy

The potential return of Donald Trump to the White House raises concerns about an impending trade war, particularly involving tariffs on Canadian goods. Trump's consideration of a 25% blanket tariff could trigger a corresponding economic downturn in Canada, with projections indicating a possible recession by mid-2025 if such tariffs are enacted. Scotiabank forecasts suggest that retaliatory measures from Canada could severely contract the economy, with estimations of up to a 5.6% shrinkage. This situation highlights the interconnectedness of U.S.-Canada trade relations and the significant implications such tariffs would have on Canadian businesses and consumers.