Canada Defies Trump Tariffs, Adds 75,000 Jobs in July

Canada's economy continued its strong performance in July, adding a notable 75,000 jobs to bring the unemployment rate down to 6.4 percent, its lowest level in two years.

The jobs growth exceeded analyst expectations of around 20,000 new positions, and was spread across various industries, including finance and construction.

This increase reinforces the Bank of Canada's view that businesses are adapting well to US tariffs imposed by President Donald Trump. In contrast, the United States reported a July job loss of 23,000 jobs.

The strong labour market has led TD Bank to predict further decreases in unemployment throughout the year. However, it also cautioned against potential 'downside risks' due to ongoing trade tensions and Trump's threat to impose additional tariffs on select Canadian goods.