Canada Growth at Risk Due to Heightened Trade Anxiety: IMF
Trump administration’s trade, tax policies could weigh on Canada ‘for an extended period’
in the event Nafta was terminated—as Mr. Trump has threatened to do—and there is a reversion to tariff rates under World Trade Organization rules, Canadian economic output could be reduced by 0.4% over the next four to five years, and “by even more if nontariff trade costs increase.”
.. deep U.S. cuts to corporate tax rates pose another “considerable uncertainty” on the Canadian economy, warning the combination of lower U.S. taxes and trade uncertainty could make Canada a less attractive destination for investment.
.. trade uncertainty is prompting some Canadian firms to delay decisions on business investment, while other companies are opting to hedge bets and expand outside of Canada. “We expect business investment to increase, but not by as much as it could without this uncertainty,”