Ontario could be sent into modest recession by U.S. tariffs [Video]

Ontario could enter a “modest” recession, according to the province’s financial watchdog, as tariffs from the United States hit the economy and hurt business with the province’s largest trading partner.

A new report released Wednesday by the financial accountability officer of Ontario examined the impacts of steel, aluminum and auto tariffs levied by U.S. President Donald Trump on Canadian exports.

The report found the impact of those tariffs would slow Ontario’s growth in 2025 and could lead to a modest recession this year. The next year, growth would remain slow but return to just over one per cent.

The reason Ontario’s economy would be hit so hard is its reliance on exports to the United States.

The financial accountability officer found 77 per cent of Ontario’s total goods exports were to the U.S., along with 60 per cent of the province’s service exports. Every year for the past decade, with …