Trade War Threatens Canada's 2027 Growth Prospects

A potential trade war between Canada and the United States may impact Canada's economy in 2027, according to Oxford Economics. The firm predicts that the dispute could shave up to 0.3% off of Canada's expected GDP growth in 2027.

The Canadian provinces of Quebec, New Brunswick, and Ontario are likely to be hit hardest by the tariffs, as they rely heavily on manufacturing goods subject to U.S. levies and exports to the United States.

Oxford Economics also forecasts that Canadian inflation will run about 0.3 percentage points above its previous outlook in 2027 due to the tariffs.