Canadian Economists Say Trade Conflict Fallout With The US Is Acceptable

Economists told Canada’s finance minister at a private meeting that the damage from the ongoing trade rift with Washington is manageable, Bloomberg reports, citing sources close to the discussion.

Economists Reassure Canada’s Finance Minister

Economists have told Canadian Finance Minister François-Philippe Champagne that they view the fallout from the trade conflict with the United States as acceptable. Bloomberg reported this, citing sources familiar with the meeting.

“Economists in a private meeting on August 26 told Canada’s finance minister that they consider the damage from the growing rift with the US over trade to be acceptable,” the agency reported.

A Tense Trade Standoff Continues

Trade relations between the US and Canada remain locked in a period of sharp confrontation. After Washington imposed heavy tariffs on Canadian imports, Ottawa responded with matching duties on American goods worth tens of billions of dollars. Steel, dairy products, and farm machinery have all been hit.

Trump’s EU Warning Adds Pressure

US President Donald Trump earlier threatened to cut trade ties with Europe across several sectors if Canada were granted associate membership in the European Union. His sharp reaction followed remarks by European Commission President Ursula von der Leyen, who said earlier in September that work had begun on a mechanism to bring Ottawa closer to the bloc.