Recession likely if tariffs stay, say economists
Canada will likely fall into a recession if the tariffs and retaliatory measures stay in place for an extended period, economists warned on Tuesday morning.
“Trump’s tariff hammer will come down hard on Canada’s economy,” wrote Doug Porter, chief economist at Bank of Montreal. “If the announced tariffs remain in place for one year, the economy would face the risk of a moderate recession. A couple quarters of contraction are well within the realm of possibility.”
Tu Nguyen, an economist with RSM Canada, said that businesses — especially exporters — might need to cut back on jobs as prices go up, unemployment rises and consumers pull back on spending. Supply chains will “eventually … adapt to a new global reality,” she wrote.
