Canadian President Donald Trump’s growing trade war collapse, economists warned of grocery prices, major job losses, and even a possible recession if threatened that American tariffs are effective.
The United States is Canada’s largest trading partner, which is an accounting for about two-thirds of Canadian imports and is receiving more than 70% exports. But under Trump’s new “Liberation Day” tariff – 25% on Canadian goods and 10% on energy – Ottawa now faces a punch of an economic intestine that may be renovated in major provinces, industries and its national election campaign.
Trump repeatedly exploded that he is “unfair” trade practices, which justifies the wider tariff with the US citing trade imbalances with the US.
“This is the beginning of liberation day in America,” Trump said last week. “We are going to charge countries to do business in our country and take our jobs, take our property, take a lot of things, which they have been taking for years. They have taken a lot from our country, friend and enemy. And, clearly, friend is very bad with the enemy.”
Trump’s 11th week office has been set to focus on tariff as President.
Canadians oppose President Donald Trump’s US tariffs and other policies in Toronto on 22 March 2025. (Reuters/Carlos Osorio)
Increased tariffs may mean that Americans will see high price tags on fertilizer and everything from oil, vehicles and machinery to plastic and wood products, which will, theoretically, will prevent consumers from buying products and will be the result of damage to Canada’s economy.
Similarly, Canada applied mutual tariffs on US goods worth $ 30 billion, which means that Canadians will not only feel loss on a macro scale, but also in an immediate sense, in the same sense, the price of leafy greens, citrus, orange juice, beef, pork and fish at the same sense.
Ottawa has not yet announced any tariff on American imported vehicles, which is due to how it can stop Canada’s economy more. However, according to Canadian outlet financial posts, based on Trump’s April 2 announcements, there are some $ 95 billion American goods, allegedly considering laying tariffs.
“They are in the midst of a general election campaign,” told Fox News Digital, a senior policy analyst in a trade policy with the Heritage Foundation. “I think it is very difficult for them to interact on these measures during the election campaign and keep these measures.
“Whatever they do and say that now the electoral weight bear,” he said, given that Canadian politicians would need to create a careful balance: Trump measured sufficient to appeal to voters on Trump but measured enough to leave the room for future conversation on tariffs.
“If they put on mutual tariffs, it would harm the standard of living of Canada and have an effect-like all this is already an impact-in Canada,” Hale said, seeing that auto tariffs not only affect the sales of direct car, but all businesses that rely on vehicles, create a trick-dowry effect.
Canadians claim that they are canceled for us for the remaining of Trump Term
Canadian Liberal Party leader Mark Carney talks to supporters during a rally in Montreal on March 27, 2025. A federal election has been called, and Canadian voters go to the election on 28 April. (Andrez Ivanov/Getty Images)
While Trump has argued that his tariffs protect American manufacturing – especially the decline for auto sector – Canada may be far more serious. Immigration Minister Mark Miller has warned that up to 1 million Canadian jobs are at risk.
“Most Canadians live within 100 miles of the US-Canadian border, and therefore they will be very impressed very much,” Hale said. “Most not Americans.”
Hale said that while tariffs would affect the entire US, the most difficult-turned areas would be Canadian imports, such as agriculture closely associated with agriculture. For example, 90% of its potash fertilizer from the US, Canada.
“This border will have an inconsistent impact on the states,” he said, but he said, but he said that economic stress on Canadian areas like Ontario will be much more.
Canadian leaders have already expressed concern that 160,000 jobs can be lost in Quebec, with another 500,000 jobs in Ontario, it depends on how long the tariff dispute lasts.
Two of both Quebec and Ontario are two of the provinces, who expect one of the most difficult hits in Canada to be a lot more rely on their steel and aluminum and wood and forestry areas for exports.
A worker logs on a truck on February 18, 2025 in Western Forest Products Ladmith, British Columbia, Canada. (James McDonald/Bloomberg via Getty Image)
Canada may withstand a recession this year if he could not rein in Trump’s tariff aggressive, Oxford Economists warned for the first time in a report last November.
The previous tariff wars between business partners during the Trump administration resulted in a loss of billions of dollars for Americans and their foreign counterparts.
Trump has kept a ‘very productive call’ with Canadian Prime Minister: ‘We agree on many things’
But Trump is less severely affected than nations such as Canada.
The entire impact of the tariff war with Canada remains uncertain as Washington has also put standing tariffs on the European Union, China and Mexico. Trump has promised to target “dirty 15”, which are countries that he accuses the most contribution to the American trade deficit.
Cambodia, India, Indonesia, Japan, Malaysia, South Africa, South Korea, Switzerland, Taiwan, Thailand and Vietnam are expected to be one of the next targeted people in Trump’s tariff declaration of Trump, which they have described as “liberation day”.
The details of Trump’s next steps in their tariff war with Canada and dozens of other nations are unknown before the April 2 deadline, which has created a sense of uncertainty, Hale said.
He said, “Last week’s Bureau of Economic Analysis Reports indicated a constant high core personal consumption expenditure PC inflation at 2.8%. So inflation can give any argument, not coming down, and is definitely increasing value levels,” he said. “Consumer expenses have slowed down in both Canada and the United States.”
President Donald Trump comments on February 13, 2025 after signing an executive order on mutual tariffs at the Oval Office. (Andrew Harnik/Getty Images)
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He said, “Business wants certainty. They cannot make future investment decisions in this environment,” he said, while a recession in Canada can be on the horizon, there are lots of variables to make a prediction on the US at the moment.
“I know that business and banks, people who are investing in projects want to be able to plan,” Hal said. “Hopefully, we will have a clear idea (on Tuesday) where all this is going to the ground, and then we can work with it.”
