With the US and Canada locked in a trade war, fears of a recession lurk

Analysts say Canada may lose 100,000 jobs under the current tariffs and could go into recession if the USMCA pact ends. The trade war that United States President Donald Trump has triggered with Canada is expected to hurt businesses in both countries. But experts say the damage to the Canadian economy will be worse, as the tit-for-tat tariffs have raised the chances of a recession. On Saturday, the US imposed 50 percent tariffs on $20bn worth of Canadian goods after trade negotiations between the two countries collapsed. On Monday, Trump also threatened Canada with new 50 percent levies on all car products, starting January 1.

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