Canadians have been cutting back on spending due to “escalating” trade tensions with the United States and the uncertainty surrounding American tariffs, a new report from TD Economics suggests.
“The latest TD debit and credit card spending data suggest that Canadian consumers hit pause in the second quarter of 2025, reacting to escalating trade tensions,” the recently-released report says.
TD’s spend data indicates that credit card spending increased by 1.5 percent in the second quarter this year compared to that of last year, however this marks a decrease from the 5.4 percent growth in the first quarter this year. The report says this decline reflects a “growing softness in underlying economic conditions—especially the weakening labour market.”…