Although President Trump has hit pause on tariffs on Canada, his communications suggest he still wants a broader agreement on various trade issues. Given the chaotic political situation in Canada, it seems unlikely that such an agreement can be made in just one month, raising the risk that Canada will face rolling tariff threats for the foreseeable future. This will weigh on business investment, even if those 25% tariffs are never imposed, so we are trimming our forecasts for GDP growth this year.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services