US Tariffs Threaten Canadian Economy, Experts Warn of Lingering Uncertainty

Canadian businesses are on high alert as the US threatens to impose new tariffs on nearly $29 billion worth of Canadian goods. According to Doug Porter, chief economist at the Bank of Montreal, this is not a genuine move but rather a bargaining chip in the ongoing trade negotiations.

The proposed tariffs, which could take effect by August 19, would target a range of products including toys, bicycles, honey, and paper products. If implemented, they could cut Canada's GDP by as much as 0.5% and add to the 1.5% dent the Bank of Canada estimated before new levies were in the picture.

While Canadian energy, potash, and critical minerals would remain exempt from the tariffs, resource-rich provinces such as Alberta and Saskatchewan have so far been sheltered from the brunt of the effects. However, experts warn that uncertainty from tariffs may linger over Alberta businesses.

Adam Legge, president of the Business Council of Alberta, said its members are not overly concerned with the latest round of tariff threats, mostly because of the energy exemption. 'The optimism amongst our members is still quite strong,' he added.