How are Trump’s tariffs being covered in Canadian media? ‘Recession’ is among warnings
UPDATE: President Donald Trump announced a 30-day pause to tariffs imposed on Canadian exports to the U.S. after he came to an agreement with Canadian Prime Minister Justin Trudeau, Trump said in a post on Truth Social on Feb. 3. Trump said Canada has promised to implement a $1.3 billion border plan to mitigate drug trafficking across the border.
The original story continues below.
While President Donald Trump is lauding his steep tariffs on imports from its neighbor to the north, Canadian news outlets are reporting the potential implications on the country’s economy.
Reports from Canadian news outlets warn of a potential recession in the northern country if Trump’s 25% tariff on Canadian exports sustains, along with the retaliatory tariffs Canadian Prime Minister Justin Trudeau announced would go into effect on Feb 4.
“Trump’s tariff hammer will come down hard on Canada’s economy,” the Bank of Montreal told CBC. “If the announced tariffs remain in place for one year, the economy would face the risk of a modest recession.”
Trump’s 25% tariff on Canadian imports into the U.S. and 10% tariff on energy into the country was announced over the weekend along with a 25% tariff on imports from Mexico and 10% from China, according to the White House. The Trump Administration imposed the tariffs, which were promised by Trump during his most recent campaign, as a response to unauthorized border crossings and drug trafficking into the U.S.
Canadian Prime Minister Justin Trudeau is set to meet with Trump on Monday before the tariffs take effect on Feb. 4.
The second meeting with Trudeau comes hours after Mexican President Claudia Sheinbaum Pardo and Trump came to an agreement to pause the tariff on Mexico’s goods for one month in exchange for having 10,000 members of Mexico’s national guard deployed to the border to mitigate drug trafficking into the U.S., both Sheinbaum and Trump said on social media.
Warnings of a recession
In light of recession warnings caused by the “trade war,” economic experts tell Canadian news outlets that unemployment in the country could increase in industries such as manufacturing and transportation due to price increases, CBC and The National Post reported.
The Canadian dollar could also depreciate to “mitigate the prices of exports for U.S. importers,” which could hurt Canada’s consumers and businesses, RSM Canada economist Tu Nguyen told CBC.
Fresh fruits and vegetables could increase in price as early as a week, RSM Canada economist Tu Nguyen told The Globe and Mail. Costs of appliances and vehicles would likely increase over time.
Given warning signs of a recession in the country, some local leaders have started to discuss relief options for those most affected by any potential cost increases.
Premier David Eby, who represents British Columbia, predicts that the tariffs could be “more serious than the 2008 recession” for his province, CBC reported. Eby has mentioned that relief packages may be necessary.
Retaliatory tariffs on U.S. goods could hurt Canadians
In response to Trump’s tariff, Trudeau announced a 25% tariff on $30 billion of specific U.S. goods coming to Canada and an additional $125 billion worth of American goods in the next three weeks, the National Post reported.
Business leaders and Canadian CEOs expressed concern about this retaliatory move.
“Our goal should be to impose the least amount of economic harm on Canadians. Over time, widespread retaliatory tariffs would amount to permanent higher taxes on every Canadian,” Business Council of Canada CEO Goldie Hyder told the National Post.
Calls to ‘buy Canadian’
Groceries, appliances and vehicles are set to see a steep price increase as a result of the tariffs, economists told The Globe and Mail, leading locals to retaliate on their own.
In liquor stores across the country, photos show signs suggesting shoppers “buy Canadian instead” as The Globe and Mail reports state-run stores pulling American-made alcohol from their shelves.
In British Columbia, Premier David Eby said he would block the purchase of U.S. goods and encourage corporations to purchase Canadian goods, he told The Globe and Mail.
Trump and Trudeau are expected to speak for a second time on Monday afternoon, CTV News reported. Trump said the two will reconvene at 3 p.m., the president said on Truth Social.
This story was originally published February 3, 2025 at 3:02 PM with the headline "How are Trump’s tariffs being covered in Canadian media? ‘Recession’ is among warnings."
