Category: Uncategorized

On February 1, 2025 the United States imposed a 25% tariff on all Canadian goods being imported to the U.S. except energy which only received a 10% tariff. Prime Minister Trudeau who has already announced his resignation and has parliament prorogued announced a 25% import tariff on U.S. goods imported to Canada.

According to a report done by the Canadian Chamber of Commerce the 25% tariff imposed by Trump would cause the Canadian economy to fall into a depression by mid 2025, and will cost each Canadian roughly $2,000 CAD. This would be a 2.6% reduction in GDP. This impact would further impact Canadians in April when the Carbon tax increases. While at the same time the U.S. would only experience a 1.6% reduction of GDP or $1,300 USD.

But what do these reductions mean for the individual in each nation? Looking at each nations GDP per capita we can see just how much the average person will be effected. The GDP per capita in Canada is $53,372 CAD which means the average Canadian will experience a 3.75% loss in earnings. While the GDP per capita in the U.S. is $82,769 USD which results in a 1.57% loss in earnings.

However, these tariffs will disproportionately effect Canadians who work in manufacturing and production that exports products to the U.S.

This combined with the price increases due to inflation as a result of increased government spending/deficit and the increasing carbon tax will be a significant increase to cost of living.