OTTAWA — The Canadian economy contracted in the second quarter under the weight of U.S. tariffs, Statistics Canada said Friday.

Real gross domestic product declined 1.6 per cent on an annualized basis in the second quarter thanks to a sharp drop-off in exports and business investment.

That’s down from annualized growth of two per cent in the first quarter, a figure StatCan revised down Friday from 2.2 per cent originally.

Real GDP was also down on a per-capita basis in the second quarter, swinging from a gain in the previous quarter.

U.S. President Donald Trump ratcheted up his tariffs against Canada and the world in the second quarter, particularly targeting steel, aluminum and autos.

"It should come as no surprise that the Canadian economy struggled in Q2 as tariffs ramped up," said

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