Canada’s economic growth would slow to 0.7 per cent this year and next—below the two per cent previously forecast for both years—if U.S. President Donald Trump goes through with slapping 25 per cent tariffs on nearly all Canadian and Mexican goods in April, the OECD said Monday. (The Logic)
Talking point: The hit to Mexico’s economy would be deeper, with the Paris-based policy forum forecasting in its interim global economic outlook that it would contract by 1.3 per cent this year and shrink another 0.6 per cent in 2026. The U.S. itself is also expected to suffer from the trade barriers, despite Trump championing tariffs as a way to boost the domestic economy. GDP growth in that country is forecast to slow to 2.2 per cent this year and 1.6 per cent next year. Inflation is another risk. “Central banks should remain vigilant given heightened uncertainty and the potential for higher trade costs to push up wage and price pressures,” the report warns.