One year of tariff shocks in Canada: What we learned
Global trade continued to expand in 2025 despite broad tariffs imposed during the second administration of Donald Trump, with U.S. imports rising and the trade deficit widening slightly as supply chains shifted away from China toward other Asian economies. In Canada, economic indicators showed mixed resilience — including a modest per-capita GDP increase and steady consumer spending — but business investment weakened and tariff impacts were uneven, hitting sectors like steel and regions such as Ontario and Quebec hardest. RBC notes that while the global economy has adapted to U.S. trade shocks, Canada remains highly dependent on U.S. trade, underscoring the importance of maintaining agreements like CUSMA and expanding trade diversification efforts.
