Canada’s Economy Vulnerable to Trump’s Tariffs and Tax Cuts

A report by Scotiabank Economics warns that Canada’s economy would suffer a greater impact than the United States if Donald Trump wins the upcoming presidential election and imposes promised tax cuts and tariffs on all U.S. imports. The report says that Canada’s GDP would likely fall by 3.6% by 2027 relative to current forecasts, while inflation and interest rates would also rise. The report warns that Canada needs to urgently address its issues with lagging productivity to make itself less vulnerable to economic shocks from trade policy changes in the U.S. and abroad.

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