Economists say the Canadian economy is poised to plunge into a recession this year if U.S. tariffs that took effect Tuesday morning remain in place.
Canada’s economic landscape “is set to change dramatically” because of the measures on both sides of the border, said RSM Canada economist Tu Nguyen, as the trade war will mean prices increase, unemployment rises, and consumers begin pulling back.
She said that while the manufacturing, energy, and food sectors would be immediately hit, no sector will be spared and businesses will need to cut jobs.
U.S. President Donald Trump’s executive order hitting Canada and Mexico with 25 per cent across-the-board tariffs, with a lower 10 per cent levy on Canadian energy, took effect at 12:01 a.m. ET.
Prime Minister Justin Trudeau said Canada’s response will include retaliatory tariffs on $155 billion worth of American goods. That will include tariffs on $30 billion worth of goods …