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 […]
A BMO report indicates that new U.S. tariffs could reduce Canada’s GDP growth by approximately half a percentage point. These tariffs, set at 50%, will affect about $20 billion worth of Canadian products, primarily impacting the chemicals, plastics, electronics, and consumer goods sectors. While the aggregate impact may seem manageable, individual businesses and industries are projected to suffer disproportionately.
- 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).
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