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Mon, 31 Aug 2026

Mon, 31 Aug 2026 How the US-Canada trade war is being felt on both sides of the border

The US-Canada trade war is being felt on both sides of the border.
Jobs:
* Around 55,000 manufacturing jobs have been lost in Canada from January 2025 to January 2026.
* A total of 90,000 jobs across Canada could be lost if the recent 50% tariffs imposed by the US persist, according to Calgary-based economist Trevor Tombe.
* In the US, tens of thousands of jobs have been lost in manufacturing, transportation, and warehousing sectors due to Trump's "Liberation Day" tariffs. Economy:
* Foreign direct investment into Canada hit C$96.8 billion in 2025, the highest inflow of capital to the Canadian economy since 2007.
* Canada's economy strongly rebounded in the second quarter of 2026 with a GDP growth of 3.3%, thanks to a jump in exports and domestic investment. Consumers:
* The US-based Tax Foundation estimates that an American household could pay $840 more on average this year due to Trump's tariffs on a number of nations, including Canada.
* Canada's counter-tariffs are designed to limit the impact on Canadian consumers, but economists say businesses will likely now pay more to manufacture goods. Businesses:
* Some businesses in Ontario manufacturing sectors that are deeply integrated with the US are struggling to diversify their trade.
* Foreign direct investment into Canada has helped to offset broader weakness in trade activity and local economic conditions. Overall, the trade war between the US and Canada is having a negative impact on jobs, economy, and consumers. However, foreign direct investment into Canada has helped to mitigate some of the effects.