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Canada faces recession amid U.S. tariffs, sparking job losses and government plans for a $5B fund and buy-local policies.
Canada is projected to enter a recession due to U.S. tariffs, which are expected to slow both Canadian and American economic growth, with the OECD forecasting U.S. GDP growth to drop to 1.5% by 2026.
Canada’s long-term economic struggles, including weak productivity and low investment—especially in machinery and equipment per worker, which remains well below U.S. levels—are attributed to sustained government policies under leaders whose names begin with “Tru.” The government’s response to Stellantis shifting Jeep production from Ontario to Illinois—citing job losses of up to 13,000—includes legal threats and plans for a $5 billion Strategic Response Fund, reskilling programs, and a Buy Canadian Policy.
Critics argue these measures rely on increased public spending and subsidies, diverting resources from the private sector and failing to address deeper structural issues, with little evidence they will reverse economic stagnation.
Canadá se enfrenta a una recesión en medio de los aranceles estadounidenses, provocando pérdidas de empleos y planes gubernamentales para un fondo de $ 5B y políticas de compra local.