Part 3/8:
While experts note that Canada will face severe economic repercussions, the damage may extend to a full-blown recession. With Trump’s proposed 25% tariffs on a significant list of products, Canadian Prime Minister Justin Trudeau’s response could include tariffs on approximately $105 billion worth of American goods, leading to a possible hit to GDP by up to 4%. This is especially alarming given that Canada was only projected to see a growth rate of 1.8% in 2025.
As these tariffs create economic ripple effects, the Canadian dollar is likely to weaken, contributing to an environment of rising consumer prices and increasing unemployment rates.