Will Canada Enter a Recession?
One of the biggest dangers for the inflation outlook is US President-elect Donald Trump’s threat to impose 25% across-the-board tariffs on Canadian goods. These are “significant downside risks, suggesting to us that recession in 2025 is a very real possibility,” warns Nick Rees, senior market analyst at Monex Canada. “If Trump delivers a 25% day-one levy on all Canadian exports as promised, this will tip the Canadian economy into a deep recession, warranting aggressive policy easing.”
Rees continues: “A weaker loonie would help offset the impact of any tariffs, even as it makes Canadian imports more expensive. As such, while this scenario would likely be associated with a domestic recession, any downturn would be much worse if the loonie failed to depreciate.”
Learn more about the possibility of recession here
Related Articles
How advisors can help newly blended families meet their financial goals
In the Globe and Mail article “How advisors can help newly blended families meet their financial goals,” BlueShore Financial advisors
Navigating Cross-Border Tax Challenges
In the CanadianSME article “Navigating Cross-Border Tax Challenges,” legal experts from Robins Appleby LLP provide insights into the complexities Canadian
How this advisor went from selling Kool-Aid as a kid to offering the tough advice clients need to hear
Ladan Shokrgozar is a Senior Portfolio Manager at Harbourfront Wealth Management in Vancouver, British Columbia. With over a decade of