With the US and Canada locked in a trade war, fears of a recession lurk
Escalating trade tensions between the U.S. and Canada, characterized by tit-for-tat tariffs, have raised concerns about a potential recession in Canada. Experts warn that while the U.S. economy may be less affected, Canada's heavy reliance on exports to the U.S. makes it particularly vulnerable.
Why it matters
A trade war between two of the world's largest trading partners threatens regional economic stability and could lead to significant job losses.
Analysts say Canada may lose 100,000 jobs under the current tariffs and could go into recession if the USMCA pact ends.
x whatsapp-stroke copylink google Add Al Jazeera on Google info Tensions between Washington, DC, and Ottawa have escalated in recent days after Canadian Prime Minister Mark Carney accused US President Donald Trump of negotiating in bad faith [File: Evan Vucci/Getty Images via Pool] By Megha Bahree Published On 28 Aug 2026 28 Aug 2026 The trade war that United States President Donald Trump has triggered with Canada is expected to hurt businesses in both countries.
But experts say the damage to the Canadian economy will be worse, as the tit-for-tat tariffs have raised the chances of a recession.
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