Trump’s Tariffs on Canada and Mexico Raise Recession Fears

Economists warn of significant economic consequences as the largest North American trade shock in nearly a century takes effect.

President Donald Trump has implemented sweeping tariffs, including a 25% increase on imports from Canada and Mexico, marking the largest trade disruption since the 1930s.
The tariffs have prompted comparisons to the Smoot-Hawley Tariff Act of 1930, which worsened the Great Depression, as highlighted in a viral clip from the film 'Ferris Bueller’s Day Off.'
Economists predict the tariffs could push Canada into a recession within six months, with significant impacts on the manufacturing, energy, and food sectors.
The Royal Bank of Canada estimates the tariffs will quadruple average import duties to nearly 12%, causing severe supply chain disruptions and economic contraction.
Experts also anticipate higher inflation in the U.S. and job losses in Canada, with Ontario and Quebec expected to bear the brunt of the economic fallout.