New US Tariffs Could Cut Canada’s Growth by Half a Percentage Point, BMO Study Says
The newly imposed U.S. tariffs are expected to slash roughly half a percentage point from Canada’s GDP growth, according to a report published by BMO on Aug. 24. The new 50 percent U.S. tariffs will apply to about C$28 billion (US$20 billion) of Canadian products, representing approximately 5 percent of goods exports to the United […]
TL;DR
- New U.S. tariffs are expected to decrease Canada's GDP growth by roughly 0.5%.
- The tariffs will apply to approximately $20 billion of Canadian products, or 5% of goods exports to the U.S.
- Specific sectors like chemicals, plastics, electronics, and consumer goods will bear the largest impact.
- Chemicals and plastics exports worth $4.7 billion are most affected, followed by electronics ($4.5 billion) and consumer goods ($3.1 billion).