Canada Posts 3.3% Q2 GDP Growth as 50% US Tariffs Reignite Trade War
Updated
Updated · Marketplace · Aug 28
Canada Posts 3.3% Q2 GDP Growth as 50% US Tariffs Reignite Trade War
3 articles · Updated · Marketplace · Aug 28
Summary
Canada’s economy expanded 3.3% in the second quarter, its strongest growth since 2023, after roughly a year of near-zero growth.
Business equipment replacement, stronger consumer spending and expanding AI data-center construction drove a broad rebound that economists say could help cushion the latest US trade shock.
The data landed days after US-Canada trade talks collapsed, with President Donald Trump imposing 50% tariffs on about $20 billion of Canadian imports and Prime Minister Mark Carney matching them with retaliatory levies.
Exports also strengthened in the quarter, and economists said Canada’s push to deepen trade ties with Europe and the global South is gradually reducing reliance on the US market.
That stronger backdrop may give Ottawa more confidence in negotiations as the renewed tariff fight threatens growth again in coming months.