US tariffs imposed under former President Donald Trump could trigger a recession in Canada while simultaneously disrupting economic stability in the US, according to David Gray, an economics professor at the University of Ottawa. In an interview with CGTN, Gray warned that such policies would create a "lose-lose scenario" for both nations.
"The interconnectedness of North American supply chains means economic pain travels fast," Gray explained, highlighting that Canada is the US' second-largest trading partner, with bilateral trade exceeding $700 billion annually. He emphasized that tariff-driven cost increases would ripple through manufacturing, energy, and agriculture sectors in both countries.
The warning comes as global markets remain sensitive to trade policy shifts. Analysts suggest younger workers and startups in cross-border tech hubs like Toronto and Seattle could face particular challenges from tightened trade conditions.
Gray urged policymakers to consider long-term impacts: "Short-term protectionism risks decades of economic integration that benefits consumers and businesses on both sides of the border."
Reference(s):
Not in US's interest to cause Canadian recession: Canadian scholar
cgtn.com
