Canada to Avoid Recession But Economy Still ‘Bruised’ by Tariffs

Canada’s economy is poised for a weak recovery in the second half of 2025 as exports stage a gradual rebound from tariff damage, analysts say.

Gross domestic product will grow at a 0.5% annualized pace in the third quarter, according to a Bloomberg survey of economists. That’s up from the 0.1% expected in last month’s survey, and follows a 1.6% contraction in the second quarter.

Economists also see exports rising 3.3% after collapsing at a 27% annualized pace in the previous quarter.

US President Donald Trump has imposed 35% tariffs on Canadian goods that don’t comply with the US-Mexico-Canada Agreement. ...