Donald Trump's Trade War Could Lead To A Recession In Canada
The real consequences of a trade war.
The old adage about North American economics goes: "when America sneezes, Canada catches a cold." The saying encapsulates the unity of the North American allies and trading partners. But what if the two countries are at odds?
American president Donald Trump seems determined to ruin the Canadian economy and shatter long-held tenets of North American cooperation. From increased aggression at the border, to steel tariffs, to personal attacks against Canadian prime minister Justin Trudeau, Trump has made a sport out of mocking Canada.
That's why a push to buy Canadian has become a viral trend. Most Canadians can say anecdotally that they know a few people that have cancelled American vacation plans in favour of trips to Canadian destinations, but many Canadians also apply their boycott to daily experience by avoiding American products at the grocery store.
If the latest news about Canada's economic outlook is any indication, local consumption is critically important.
According to Avery Shenfeld and the Financial Post, the Canadian economy could not withstand the strain of additional tariffs, particularly if those were to include levies on the Canadian auto industry.
Car manufacturing dominates the economy of southern Ontario. If Trump follows through on his interest in an auto tariff, a resulting recession in Ontario could balloon into a national economic lull, according to Shenfeld.
So buying local is a point not only of national pride, but also national preservation.
With a NATO meeting, and another encounter between Trump and Trudeau, upcoming, we can certainly expect escalating tensions and internationally consequential tweets of rage.
Brace for impact.