This article was automatically translated from HIBAPRESS, the Arabic version:
Hibapress
The Canadian economy will enter a recession from the summer under the effect of customs tariffs imposed by the United States, warned the Desjardins financial services group in a new report.
“With the accumulation of customs tariffs imposed by the United States, we believe that the Canadian economy risks experiencing a recession in the second quarter,” said Desjardins economists.
Given that the Canadian economy began 2025 on a good basis, it can resist a few months, but it will succumb to the drop in trade, investment, job creation and consumption caused by new American trade policy, according to the financial conglomerate.
“This situation will be exacerbated by the pre -existing opposite winds that are the rapid slowdown in population growth and the imminent increase in the number of mortgage renewals at higher interest rates,” said the report.
“The reprisals imposed by Canada will further increase economic withdrawal while pushing inflation up,” said the same source.
Quebec will suffer more strongly the impact of customs duties than the other regions in 2025, because the province produces more goods targeted by American customs duties by 25%.
The customs duties that the United States could impose will harm neuralgic sectors of the Canadian economy, warned the Governor of the Bank of Canada, Tiff Macklem on Thursday.
“It is clear that higher customs duties mean both a drop in demand, lower growth and stronger inflation,” said Macklem.
The Consumer Price Index (IPC) in Canada increased by 2.6% from one year to the next in February, after having increased by 1.9% in January, according to Statistics Canada.
The central bank had lowered its main key rate of 25 base points last week to 2.75%.
