Oxford Economic Research Institute said Canada's retaliatory tariffs against the
Trump administration's new duties may benefit some sectors but will hurt the
majority, and by raising producer and consumer costs will weaken economic
growth. Its analysis shows Canadian fiscal support will temporarily cushion the
shock from US tariffs but cannot fully offset the overall drag from bilateral
tariffs. Paper, lumber, steel and aluminium producers stand to gain most as
tariffs reduce US imports and encourage domestic production. The institute added
that almost all Canadian manufacturers would face a net negative impact from an
escalation in bilateral tariffs.
