Counter Tariffs Could Deal Canada's Economy More Pain
Canada's counter tariffs on US goods are expected to cause more economic pain for Canadians, according to economists.
The Canadian government imposed tariffs 'dollar for dollar' on about eight per cent of Canada's imports from the United States in response to President Donald Trump's 50-per-cent tariffs on $28-billion worth of Canadian goods.
These tariffs will raise existing duties on steel and aluminum products to 50 per cent and introduce new penalties on machinery, paper, electrical equipment, furniture, and plastics.
Oxford Economics estimates that the combined impact of both US and Canadian tariffs will shave about 0.3 per cent off its previous forecast for output in 2027, with this impact doubling by 2035 as it spreads to the broader economy.
The economists also predict that Canada's inflation rate will rise 0.5 percentage points in 2027 above their previous forecast due to higher producer prices.