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Story perspectives

Canada's Economy Shrinks Amid U.S. Trade War Struggles

9/25/2025

25 4 Full Breakdown

Summary

Story summary

Canada's economy remains stressed by the U.S. trade war, with business confidence flat.
In Q2 2025, Canada's Gross Domestic Product (GDP) shrank 1.6%.
Economists project Q3 growth at 0.0%-1.7%.
The Bank of Canada cut rates and plans increased spending to support the economy.
Ontario faces localized recessions from tariff impacts, especially in manufacturing, with employment recovery by 2026.

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Story summary

Canada's economy remains stressed by the U.S. trade war, with business confidence flat.
In Q2 2025, Canada's Gross Domestic Product (GDP) shrank 1.6%.
Economists project Q3 growth at 0.0%-1.7%.
The Bank of Canada cut rates and plans increased spending to support the economy.
Ontario faces localized recessions from tariff impacts, especially in manufacturing, with employment recovery by 2026.