Deloitte Cuts Canada's Economic Growth Forecast by 20% Amid Ongoing Trade War

Deloitte Canada has slashed its economic growth forecast for 2027 by 20%, citing the ongoing trade war with the US as a major factor. The accounting firm's latest outlook comes on the heels of a new American ban on select Canadian imports, which took effect this week.

According to Deloitte's chief economist Dawn Desjardins, the weight of billions of dollars in US tariffs and Canada's reciprocal measures will not fall evenly across the economy. Some sectors will be hit hard, while others may see growth and job creation.

Canada's economic growth was essentially flat in July, with GDP growth for the month coming in at 0%. Statistics Canada reported that the goods-producing industries grouping was unchanged, as increases in construction and utilities were offset by declines in other sectors.

Desjardins says the ongoing trade uncertainty is impacting consumers and businesses alike. 'We've got things that are just making us wobble a little bit in terms of our confidence that we should really be spending our money now,' she said.