Canada braces for potential trade turmoil as Trump threatens tariffs

In 2025, Canada faces significant economic challenges as Donald Trump threatens a 25% tariff on imports from Canada and Mexico. This move could impact trade relations and the economy, particularly in provinces like Ontario, Alberta, and New Brunswick, which are most vulnerable. Approximately 2.4 million Canadian jobs are linked to exports to the U.S., with Ontario, Quebec, and Alberta at the highest risk. The uncertainty surrounding potential tariffs is expected to affect business investments and could lead to job losses, even without new tariffs being imposed. The U.S. trade deficit with Canada, driven largely by energy imports, remains a key issue. While Canada is the largest buyer of U.S. goods, the potential for increased tariffs could disrupt supply chains and economic stability in both countries.