US Tariffs Won't Dent Canada's Near-Term Growth: Economists
Economists are downplaying the potential impact of new U.S. tariffs and trade restrictions on Canada's near-term economic growth.
A TD Economics client note states that the latest American response to Ottawa's counter-tariffs was threefold: stopping imports of some products, removing tariffs on a handful of others, and introducing new tariffs on still more.
The shift in tariff focus is unlikely to significantly affect domestic growth in the near term, but it represents 'another manifestation of policy uncertainty,' which could weigh on Canadian firms and raise concerns about U.S. market access.
Certainly, the escalation means that the tariffs could remain in place for longer, potentially causing Canada's economy to stagnate or contract in the fourth quarter, according to Capital Economics.