Economists say the new U.S. tariffs and Canada’s counter-tariffs could have a severe impact on affected Canadian industries, potentially rendering some businesses unprofitable while prompting others to move south.
Some say that if Washington follows through with its threat to impose 50 percent tariffs on Canadian automobiles in 2027, it could mark the end of Canada’s auto industry if the tariffs remain in place over the long term.
“It’s pretty serious for the industries involved, it’s really going to land heavily on a lot of small- and medium-sized sectors, and it’s going to be a challenge for Ottawa to fully support all of these industries,” BMO Financial Group’s chief economist Doug Porter said in an interview….