Source link : https://earth-news.info/general/canadian-economy-contracts-0-4-amid-rising-us-tariff-pressures-on-trade/
The Canadian economy contracted by 0.4% in the latest quarter, marking a significant setback amid mounting pressures from escalating U.S. tariffs. Analysts attribute the downturn largely to trade tensions affecting key sectors, as businesses grapple with increased costs and disrupted supply chains. This economic slump adds to a growing narrative of volatility in North American markets, with implications extending beyond Canada’s borders into the broader regional economy, including Mexico’s business landscape.
Canadian Economy Faces Setback Amid Growing US Trade Barriers
The Canadian economy has experienced a contraction of 0.4% in the first quarter, marking a significant slowdown influenced heavily by escalating trade tensions with the United States. New US tariffs on key Canadian exports such as steel, aluminum, and automotive parts have disrupted long-standing supply chains, creating uncertainty for businesses and investors alike. As a result, several sectors, including manufacturing and natural resources, reported sharp declines in output, signaling growing vulnerabilities amid a less favorable trade environment.
Key economic indicators highlight the immediate impacts:
- Manufacturing output: Decreased by 1.2%
- Export volumes: Fell 3.5% compared to the previous quarter
- Business investment: Registered its first quarterly drop in two years
| Sector | Q4 Growth (%) | Q1 Growth (%) |
|---|---|---|
| Manufacturing | 0.8 | -1.2 |
| Natural… |
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Author : earthnews
Publish date : 2025-08-30 11:36:00
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