Canadian Economy Resistant to US Trade Escalation

OTTAWA - Economists say new U.S. tariffs and trade restrictions on Canadian goods are unlikely to significantly affect Canada's near-term economic growth.

Despite this, they note that the latest escalation raises the risk of a prolonged trade conflict, adding uncertainty for businesses and increasing the odds that the economy could stall or shrink in the fourth quarter.

TD Economist was among those who shared their views on the matter. They stated that while new tariffs and restrictions might not have an immediate impact, they do increase the risk of a more prolonged trade conflict.