Canadians are altering their spending habits due to economic uncertainty caused by US President Donald Trump’s tariffs against Canada. A survey by CPA Canada and BDO Canada Ltd. found that over 80% of Canadians have changed their financial strategies due to the economic climate.
Trade tensions, particularly between Canada and the US, have forged “weaponized uncertainty” for Canadians, leaving many feeling worse off than they previously were.
Trump has imposed 25% tariffs on most Canadian and Mexican products and 10% on energy, starting a trade war against both nations, which is expected to trigger a recession in Canada. Prime Minister Justin Trudeau responded with $30 billion in tariffs against certain U.S. imports, with another $125 billion in tariffs to come in 21 days.
Provinces are also fighting back, with some pledging to take U.S. alcohol off store shelves and cutting up contracts with U.S. companies. The economic situation is also harming Canadians’ financial standing, with 76% saying it affects their financial well-being and 34% saying they are already worse off financially than a year ago.
Source: Financial Post
