'The worst is behind us': Canada's economy is defying some of the grim forecasts about Trump's tariffs

The hardest hit areas have proven to be concentrated in Ontario and parts of New Brunswick, reflecting their reliance on automotive manufacturing, steel, aluminum, and lumber

WASHINGTON, D.C. — When U.S. President Donald Trump first threatened tariffs on Canadian goods, the forecasts were grim.

GDP was expected to decline three per cent in seven months, job losses in the auto sector would top 100,000, inflation would tick up over three per cent and Canada would be mired in a recession.

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Analysts expected the worst when Trump threatened to use “economic force” to transform Canada into the “51st state.” But it has not come to pass.

While the trade war has indeed caused unemployment spikes, supply chain disruptions and a rough second quarter, in terms of growth, Canada