US EditionCanada's economy is showing 'resilience' against U.S. tariffs. Why?
CANADA, AUG 4 – Canada's economy rebounded in June after early Q2 contractions and is expected to avoid a technical recession despite tariffs, Bank of Canada says.
- On August 4, 2025, Tiff Macklem, head of the Bank of Canada, noted that despite the accumulation of recent U.S. tariffs, the Canadian economy is demonstrating a degree of resilience.
- The tariffs, including a recent 35 per cent duty on Canadian goods by the U.S., came into full effect mainly during the second quarter of 2025 amid broader trade tensions.
- Statistics Canada reported small contractions in GDP by industry in April and May, with a slight rebound in June, while BMO raised its third-quarter outlook to positive.
- Macklem noted business and consumer confidence remain low but have improved, stating "Consumption is still growing" despite tariffs reducing economic efficiency.
- The Bank of Canada kept its interest rate at 2.75 per cent, and forecasters expect Canada to avoid recession in 2025 if the tariff situation remains stable.
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Canada’s Economy Is Showing ‘Resilience’ Against US Tariffs. Why?
“Some resilience”—those were the two words Bank of Canada governor Tiff Macklem used last week to describe how the Canadian economy is holding up under the weight of U.S. tariffs. Just a few days later, U.S. President Donald Trump added 35 percent tariffs on Canadian goods to a running tally that includes hefty duties on steel, aluminum, automobiles and, more recently, semi-finished copper. With tariffs piling up over the past few months, econom…
·New York, United States
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A small analysis of the reasons for Canada's resistance to U.S. tariffs.
·Montreal, Canada
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Total News Sources36
Leaning Left15Leaning Right5Center5Last UpdatedBias Distribution60% Left
Bias Distribution
- 60% of the sources lean Left
60% Left
L 60%
C 20%
R 20%
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