Desjardins chief economist Jimmy Jean warns that Trump's tariffs could inflict longer-lasting structural damage on Canada's economy than a recession. After businesses found their footing in early 2026, an August breakdown in trade talks brought new tariffs on about $27.6 billion in goods, and Canadian counter-tariffs added pressure. Although the new tariffs affect only 5% of Canadian exports, firms that see the strained relationship as lasting may cut production, cancel expansions or close facilities, damage that outlasts the typical 18-month recession-and-recovery cycle. Jean estimates that if growth fell from 2% to 1%, output would be nearly 5% below what it otherwise would be within five years. The Bank of Canada estimated in January that GDP would end this year 1.5% lower than its forecast before the trade war.
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tariffsCanadaGDP growthDonald Trump
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Related tickers and likely impact
SPY
▼ Likely negativeSPDR S&P 500 ETF
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/19/2026 | 766.48 |
| Change that session | +0.42% |
QQQ
▼ Likely negativeInvesco QQQ Trust
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/19/2026 | 718.36 |
| Change that session | +1.21% |
VNINDEX
▼ Likely negativeRelevance: low
| Market | Vietnam stocks |
|---|---|
| Close on 10/20/2026 | 1,691.97 |
| Change that session | +0.13% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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