Canada Faces Economic Risks from Proposed U.S. Tariffs

Trump's proposed tariffs on Canadian goods could trigger job losses, inflation, and economic instability, highlighting Canada's population and trade vulnerabilities.

President-elect Donald Trump has proposed tariffs of up to 25% on Canadian imports, posing a significant threat to Canada's economy, which relies heavily on U.S. trade.
Analysts estimate that these tariffs could lead to job losses ranging from 500,000 to 1.5 million Canadians, depending on the tariff rate imposed.
Retaliatory tariffs by Canada are projected to exacerbate inflation, increase interest rates, and further shrink GDP, worsening the economic fallout for Canadian households and businesses.
Canada's underpopulation and labor shortages, particularly in housing construction and medium-skill trades, compound its economic vulnerabilities and hinder its ability to respond to trade shocks.
Experts recommend focusing on economic defense strategies, such as avoiding retaliatory tariffs, investing in critical industries, and reforming policies to support domestic growth and employment.