Canada's finance minister convened a closed-door meeting of chief economists,
including representatives from the country's major banks, in Toronto to assess
fallout if trade talks with the U.S. break down. Participants said some
forecasts were revised down and warned new U.S. tariffs on hundreds of Canadian
goods could disproportionately hit SMEs, but discussion of recession risk was
The prevailing view was that the Canadian economy is sufficiently limited.
resilient to absorb the tariffs, with damage likely concentrated in the targeted
sectors—an assessment that may increase Prime Minister Carney's willingness to
walk away from negotiations.
