Section 338 tariffs further delay a worsening CUSMA

The new Section 338 tariffs risk pushing the economy back towards recession, especially if Ottawa’s planned retaliation invites further aggression from the US. Worse still, a renewed trade war muddies the outlook by further delaying CUSMA renegotiations, dealing yet more damage to business sentiment and creating fresh challenges for the Bank of Canada as it balances worsening growth and inflation prospects.

Note: We’re discussing the implications of the breakdown in US-Canada trade talks in an online Drop-In briefing today at 1000 ET/1500 BST. Register here to join the event.