Al Jazeera has reported that the escalation of the trade war between the United States and Canada has increased the likelihood of an economic recession in Canada, with experts warning that about 100,000 jobs in the country will be lost if the current tariffs continue.
The United States recently imposed a 50% tariff on $20 billion in Canadian goods, and Donald Trump has threatened to impose new 50% tariffs on all Canadian automotive products starting January 1.
In response, Canadian Prime Minister Mark Carney has imposed tariffs on more than 700 American goods worth $20 billion, set to take effect on September 8.
Experts say that Canada’s economy is vulnerable due to its heavy dependence on the US market; about 70 percent of the country’s exports go to the US.
Oxford Economics has also predicted that US tariffs could cut Canada’s economic growth by 30% next year.
The provinces of Quebec, New Brunswick, Ontario, and British Columbia, and sectors such as cement, paper, wood, beverages, clothing, plastics, and electronics, have been identified as being more vulnerable to these tariffs.
