Canada-America Trade War Update: Fears of a recession are rising in Canada. The confidence of small companies and consumers has been badly shaken. Canada’s problems are not reducing. US President Donald Trump is after Canada badly. He says that Canada should be made the 51st province of America. Along with this, he has imposed heavy tariffs on Canada. America is Canada’s biggest trading partner.
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Canada-America Trade War
Meanwhile, the Small Business Confidence Index in Canada has fallen by 60% in recent months to 25 points. Such a situation did not arise even during the financial crisis of 2008. At that time, it was 10 points above the current rate. This has raised fears that Canada could be trapped in recession anytime.
Canada-America Trade War: Canadian Business Reaches Record Low
Small business confidence in Canada is falling even faster than the lockdown of March 2020. It has reached a record low. Along with this, consumer sentiments in Canada have also reached an all-time low. It is 15 points below the 2008 level.
Business Politics Connection
Its impact is also visible on the country’s politics. On January 5, Canada’s Liberal Party was expected to win 35 seats in this year’s elections while the Conservatives were expected to get 236 seats. But today the situation has changed. Today the Liberal Party is expected to win 178 seats and the Conservative Party 131 seats.
Early elections: Canada’s Prime Minister Carney addressed the nation saying, “I have just requested the Governor General to dissolve Parliament and hold elections on April 28. She has approved it.”
Canadian business Tariffs Have Shaken
Business confidence in Canada has been badly shaken since the trade war with the US began. This is because tariffs could be devastating for Canada. Canada’s share in US imports is only 14 % but the US’s share in Canada’s exports is 78%. Trump has repeatedly rejected Canada’s sovereignty and has talked about merging it with the US. In such a situation, Carney has made the election battle a battle of patriotism versus pressure and clearly said, “Trump wants to break us, but we will not bow down.”
In 2023, Canada exported goods worth 700 Canadian dollars to the US. But even before the tariffs, exports to the US had started declining. Canada’s population has grown by nine % since 2020, but the number of workers per real GDP in the country has declined by 2 % during this period. Meanwhile, the shortage of houses has worsened the situation. Due to this, the price of houses in the country has increased by 300 % since 2000.
This crisis is so big that people of the country have given up hope of a fall in the price of houses. The shortage of houses in the country started in 2021 and now the demand has doubled. Now America’s tariff can prove to be a big problem for Canada.
CANADA CALLS SNAP ELECTIONS, AMID U.S. TRADE WAR CONCERNS
— Janhvi (@itsjanhvis) March 24, 2025
Carney said he needed a strong mandate so he could deal with US President Trump, saying the trade war was one of the "most significant threats of our lifetimes" and that Trump wanted "break us so America will own us" pic.twitter.com/l3RX0xg69v
PM Carney’s Statement on Canada-America Trade War
Along with Trump’s threatening remarks, the US has also launched a trade war against Canada. The US has imposed heavy tariffs on many products imported from Canada, which could deal a severe blow to its economy. “In this time of crisis, the government needs a strong and clear mandate,” Carney said, addressing supporters in the western city of Edmonton.
Jay Chavda He is the Founder and Writer of businesspulsecare.com. He is an I.T Engineer, Freelancer, Businessman. He posts Business, Stock/Share Market, Finance Related News and updates on the website. 🔗