Canada growth up but Trump tariffs starting to hurt [Video]

Canada’s latest growth figures, released Friday, were better than expected, but also highlighted weaknesses in the economy as the effects of a trade war launched by US President Donald Trump began to take hold.

The nation has been shaken by the mercurial Republican billionaire’s repeated tariff threats — and his targeting of its automotive, steel and aluminum sectors in particular with 25 percent levies.

The protectionist policy has fractured longstanding relations between the two neighbors that had seen a progressive melding of their supply chains over decades.

The Canadian economy grew by 2.2 percent in the first three months of 2025, as exports surged to try to get ahead of the US tariffs, according to the national statistical agency.

Most analysts had expected only modest growth.

The rise was largely driven by exports and a buildup in business inventories mostly by wholesalers, said Statistics Canada.

But lower household spending in the quarter suggests the “domestic economy looked …