Canada’s Early 2025 Growth Slows as U.S. Tariffs Threaten Economic Momentum

In January 2025, Canada's economy experienced a 0.4% growth, primarily driven by the oil and gas, mining, and manufacturing sectors. However, preliminary data indicates that growth stalled in February, likely due to severe winter weather and the impending threat of U.S. tariffs. Economists suggest that businesses may have accelerated exports to the U.S. ahead of the tariffs, contributing to the earlier growth. The introduction of U.S. tariffs in March, particularly a 25% duty on steel and aluminum, is expected to negatively impact Canada's GDP in the coming months. Prime Minister Mark Carney has emphasized the need for Canada to rethink its economic strategies in light of these trade challenges.