Tony Stillo and Michael Davenport of Oxford Economics estimate the combined effect of the US tariffs, Canadian retaliation, and related federal support programs will reduce output by about 0.3 percent against their baseline forecast, in a report cited by Bloomberg.
That estimate accounts only for measures already announced.
Employment has grown by an average of 3,400 people per month this year, Bloomberg reported, citing Statistics Canada data that also shows higher layoff rates in industries dependent on US demand for exports.
“If there’s further retaliation from the Canadian side, of course, we’re not going to just sit down and take that. Our view is, ‘Don’t retaliate,'” US Trade Representative Jamieson Greer told CBC News chief political correspondent Rosemary Barton, suggesting Washington might consider bans on Canadian products.
Trump announced after the talks collapsed that he would raise tariffs on autos to 50 percent from 25 percent and apply a 50 percent rate to auto parts, both effective January 1, Bloomberg reported, noting he has not taken formal steps to implement the levies.