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41m ago

Canada’s Economy Shrinks 1.6% in Q2 as U.S. Tariffs Hit Autos and Investment

Tariff‑driven weakness in auto exports increases the likelihood the Bank of Canada leaves rates unchanged in September.

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This week Winnipeg police obtained a search warrant for a shack in an encampment, arrested three people, and seized stolen property while emphasizing the presence of support teams.
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Overview

  • Statistics Canada reported real GDP fell at a 1.6% annualized pace in Q2 (−0.4% quarter over quarter), the first quarterly decline since late 2023.
  • International exports of passenger cars and light trucks dropped 24.7% as U.S. tariffs took effect, and machinery and equipment investment fell 9.4%.
  • Monthly GDP contracted in April, May and June, with June down 0.1%, though a flash estimate points to a 0.1% uptick in July.
  • Ottawa said it is working with industry to protect jobs and investment in autos and manufacturing, and has imposed counter‑tariffs that also curbed imports.
  • Markets offered a mixed signal, with the S&P/TSX ending flat as U.S. indices set records, supported by strong Canadian bank earnings and a modest post‑earnings dip in Nvidia.