Futures tracking Canadian stocks were little changed on Friday after the release of GDP data. Canada’s economy grew at an annualized rate of 3.3% in the second quarter, its fastest pace in nearly two years, providing some cushion against rising economic risks from trade disputes with the United States.
Canada’s ambassador to Washington, Mark Wiseman, said on Thursday that Ottawa could not accept any trade agreement that failed to safeguard a strong Canadian auto assembly and parts sector.
Earlier in the week, US President Donald Trump threatened on Monday to raise tariffs on all Canadian cars, trucks, and automotive parts to 50%, effective January 1, 2027. The United States also imposed 50% tariffs on a range of Canadian products on Saturday—including furniture, plastics, plywood, and electrical equipment—on top of existing duties on steel, lumber, and autos. In response, Canada introduced retaliatory tariffs on roughly $20 billion worth of annual US imports.
These escalating trade tensions have fueled concerns that the conflict could undermine Canada’s economic recovery.
