Trade Clarity to Help Canada’s Economy Rebound After Modest Recession: Deloitte

Trade Clarity to Help Canada’s Economy Rebound After Modest Recession: Deloitte
Steel workers work at the ArcelorMittal Dofasco steel plant in Hamilton, Ont., on March 12, 2025. The Canadian Press/Nathan Denette
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Some economists are putting an increasingly optimistic slant on Canada’s tariff dispute with the United States, arguing the economy should be able to avoid “worst-case” scenarios from the trade war.

That doesn’t mean the Canadian economy gets off scot-free—a new forecast published by Deloitte Canada on Wednesday calls for a modest recession to hit in the second and third quarters of the year as uncertainty and weakness caused by tariffs start to bite.