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Trumps tariffs are back in news, this time turning to Canada

Welcome to The Carillon’s new finance column! We’ll cover important economic and financial news from Canada and around the world, explaining what it means for students. From tuition costs to job markets, we’ll break down how these changes affect you, making finance easy to understand and relevant to your life. If you have any request for a topic or want me to highlight a stock price – shoot me an email at pall@carillonregina.com. Let’s make finance fun for all!

Disclaimer: The information in this column is intended for educational purposes only and is not financial advice. For personalized financial guidance, please consult a licensed professional.

News of the week:

There has been a lot of chatter about Trump tariffs and it’s time to examine how that will affect Canada financially and economically. According to a BBC release on Feb. 4, , U.S. President Donald Trump has held off tariffs on Canadian and Mexican imports for 30 days; tariffs on China were implemented on Feb. 4, 2025. Both Canada and the U.S. have agreed on strict border enforcement for illegal immigration flowing into the U.S., along with drugs like fentanyl. Economists predict that the talks of a potential tariff could devastatingly affect Canada. According to the Canadian Chamber of Commerce, “Canada’s GDP would shrink by 2.6 per cent, costing Canadians approximately $1,900 annually.”

The saddest part about all this is that it’s hitting the country when it is already struggling. With an uncertain immigration scenario and a recovering economy from the interest rate shock, Canada is not placed well to absorb this affect, especially on a scale like this. Right now, countries should encourage consumers to choose their own country’s goods over imported goods. With the additional tariffs, Canadian goods might be cheaper for consumers to purchase.

The problem will escalate if a retaliatory tariff is implemented in Canada on imported U.S. goods, making Canadian goods in U.S. more expensive and decreasing the demand of those goods. This was threatened by the Canadian government for Feb. 4, but is now delayed. Ultimately, it would impact the Canadian economy with reduced demand for Canadian goods. Since the economies are so tight knit, the decision would disrupt supply chains and mutual trust upheld over the years. If Canada retaliates, the impact will felt on the prices of goods and in possible job loss in the steel and aluminum industries. According to The Globe and Mail, around 30,000 workers in the steel manufacturing industry could lose their jobs in the short term; long term numbers range from 100,000 to 600,000. Provinces like Ontario and Quebec with extensive production facilities would take a massive hit, due to job losses and lower industrial output.

Overall, the political tension between Canada and the U.S. is not easygoing and there is a trade war in place with both parties ready to attack. With tariffs in the air, Canada is not positioned well to take the hit as it would adversely affect the economy and make it harder to recover from the already inflationary pressure that it is going through.