Deloitte Warns of 'Severe' Economic Consequences for Canada in CUSMA Exit

A new report from Deloitte Canada warns that while an exit by the U.S. from the North American trade pact, CUSMA, would have severe consequences for Canada's economy, it would not be catastrophic.

The report, titled 'Tariffs: A Rough Road Leads to New Destinations,' outlines both best- and worst-case scenarios for the domestic economy in the event of a U.S. withdrawal from CUSMA.

According to the authors, Canada must look beyond trade diversification to mitigate the impact, considering measures such as removing interprovincial trade barriers and fostering new industries.

The report emphasizes that even if Canada boosts trade with more diverse international partners, it would only partially fill the gap left by a U.S. exit from CUSMA.