Re-escalating trade war puts Canada’s economic rebound at risk: economists

OTTAWA — Economists are warning that a re-escalation in the trade war with the United States puts Canada’s burgeoning economic recovery at risk.

The U.S. imposed 50 per cent tariffs on roughly $28 billion worth of Canadian goods over the weekend after trade talks fell apart.

Bank of Montreal expects the new tariffs will carve half a percentage point off Canada’s economic growth as business investment and confidence take a hit.

Prime Minister Mark Carney has pledged to retaliate with dollar-for-dollar tariffs starting Sept. 8, which economists warn could add to inflation in Canada.