Canada’s Stagnant Q4 GDP Growth Amid U.S. Tariff Uncertainty
Canada's economy showed signs of strain in Q4 2025 as GDP growth stalled following aggressive U.S. tariffs. Statistics Canada data reveals a likely decline in real GDP growth for the quarter, contrasting with modest Q3 gains. While services maintained fragile growth, manufacturing and goods-producing sectors bore the brunt of punitive trade measures.
The TRUMP Administration's escalating tariffs—25% on all Canadian products (rising to 35%), 50% on steel/aluminum, and 25% on auto imports—have particularly devastated Canada's manufacturing base. Energy exports also faced 10% tariffs on oil and critical minerals. This economic pressure underscores Canada's vulnerability to U.S. trade policy shifts given deep bilateral integration.