Canada's Economy at Risk as US Exits CUSMA

A new report from Deloitte Canada paints a bleak picture of what could happen to Canada's economy if the US were to leave CUSMA, the North American trade pact.

The worst-case scenario would see Canada's real GDP fall by 1.6% or $402 billion over the next decade, with employment shrinking by an average of 163,000 jobs annually.

The manufacturing sector would bear the brunt, with motor vehicles and parts seeing a 28% plunge in real GDP compared to the baseline, while electronics, machinery and equipment would lose 21%, rubber and plastics products 20%, and chemicals 13% by 2036.

The oil and gas sector would also be severely impacted, with oil sales to the US dropping 11% and natural gas seeing a 30% decline.