Canadian companies are already feeling the pinch of Trumps tariffs [Video]

With the worst shock to global trade in nearly a century expected to plunge Canada’s economy into recession this year, companies are scrambling to overhaul their business models, while consumers are being warned to expect higher prices on some food items starting this week.

Economists rushed to downgrade their forecasts for the year after U.S. President Donald Trump imposed sweeping tariffs on all imports from Canada on Saturday and Ottawa responded the following day with a flurry of counter tariffs, all of which are set to take effect on Tuesday.

The U.S. has imposed a 25-per-cent tariff on all Canadian goods except energy products, which will be taxed at 10 per cent.

Canada plans to retaliate on $155-billion worth of American-made products, with an initial phase of $30-billion applying to goods ranging from fruit, meat and clothing to carpets, rubber tires and appliances, and the rest following in 21 days.

The hit …