Sweeping tariffs could be 3% hit to Canadian economy, even with carve-outs: report [Video]

A CIBC report says sweeping tariffs imposed by the U.S. could cost the Canadian economy as much as 3.25 per cent, even factoring in possible exemptions for the oil and gas sector.

An analysis published Tuesday examined four potential scenarios in which U.S. President Donald Trump slaps new taxes on goods imported from Canada, ranging from 10 to 20 per cent and with possible carve-outs for key industries.

Speaking with reporters on Monday evening, Trump said he’s thinking about hitting Canada and Mexico with 25 per cent tariffs on Feb. 1.

Prime Minister Justin Trudeau has said Canada would respond and that “everything is on the table.”

The CIBC report said a 20 per cent tariff that excludes commodities — which make up around 46 per cent of Canadian exports to the U.S. — would still result in a GDP hit of 3.25 per cent.

Under a more conservative scenario …