Analysts warn US-Canada trade war could push Canada into recession
Analysts estimate current tariffs could cost Canada 100,000 jobs, while an end to the USMCA trade pact could tip the country into recession.
As trade tensions between the United States and Canada continue, economic analysts are raising concerns about the potential toll on Canada's economy. According to their assessments, the tariffs currently in place could alone cost Canada around 100,000 jobs.
Recession risk
The situation could worsen significantly if the United States-Mexico-Canada Agreement (USMCA), which currently governs trade relations among the three countries, were to collapse. Analysts warn that such an outcome could push Canada's economy into a full recession.
USMCA has served as a key foundation for relatively open trade among the three North American nations, and its potential termination is seen as a major risk factor for the region's economic stability.
The ongoing standoff between the two countries points to increasingly strained trade relations, creating uncertainty for businesses and labor markets on both sides of the border.
