Some economists are putting an increasingly optimistic slant on Canada’s tariff dispute with the United States, arguing the economy should be able to avoid “worst-case” scenarios from the trade war.
That doesn’t mean the Canadian economy gets off scot-free—a new forecast published by Deloitte Canada on Wednesday calls for a modest recession to hit in the second and third quarters of the year as uncertainty and weakness caused by tariffs start to bite.
“We do think the economy really is going to be considerably slower,” said Dawn Desjardins, chief economist at Deloitte Canada.
After a surprisingly strong first quarter that saw many businesses rush their orders to get ahead of looming tariffs, Canadian exports were already showing signs of a steep decline in April….