Particle.news
Download on the App Store
42 ARTICLES
·
1h ago

Canada’s Economy Shrinks as U.S. Tariffs Bite, Auto Exports Plunge

Tariff damage to key manufacturing sectors pushed output lower, sharpening focus on the Bank of Canada's September call.

Image
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.
Image
Image

Overview

  • Statistics Canada reported Q2 real GDP fell at a 1.6% annualized pace, or 0.4% quarter over quarter, marking the first contraction since late 2023.
  • International exports of passenger cars and light trucks dropped 24.7% in the quarter, and business investment weakened with machinery and equipment spending down 9.4%.
  • Monthly GDP slipped 0.1% in June for a third straight decline in goods-producing industries, with an advance estimate pointing to a 0.1% uptick in July.
  • Counter-tariffs reduced imports, partially offsetting the export slump, while faster inventory accumulation and higher government and household spending provided limited support.
  • Ottawa pledged support for autos and manufacturing, economists said the data strengthens the case for the Bank of Canada to hold rates next month, and markets diverged with a flat TSX as U.S. indexes notched fresh records after key earnings.