Canada To Lose 90,000 Jobs From Trade War: Brace For 'Economic Pain' | Trevor Tombe

The US-Canada trade war, triggered by recent 50% tariffs on $20 billion of Canadian imports, threatens to slow Canada's economic growth and increase consumer costs. Trevor Tombe, an economics professor at the University of Calgary, estimates these tariffs could put approximately 87,000 Canadian jobs at risk, primarily in the manufacturing and export sectors. While the Canadian government frames retaliation as a necessary defense of sovereignty, Tombe argues that such measures are counterproductive, as they further strain the economy and offer little leverage against US protectionist shifts. Beyond immediate trade tensions, Canada faces a decade-long productivity gap compared to other OECD nations, driven by regulatory burdens and uncompetitive tax policies. Addressing this requires urgent domestic reforms, such as full capital expensing and reduced interprovincial trade barriers, to foster investment and reverse the country's long-term economic stagnation.