With a Canada and United States trade war underway, the stock market and Canadian economy is getting hit hard. The effect of the tariffs set by Donald Trump start March 13, 2025. University of Toronto Assistant professor of economic analysis and policy, Rob Gillezeau explains that the stock market has already crashed.
“Now this would result in a permanent restructuring of the Canadian economy, so some of that pain is going to be felt even a decade later, so it’s not a quick rebound, but it can be very nasty thinking about the stock market. Think about how clients and economic activity map onto that,” says Gillezeau.
He adds that Canada and the United States will both be going into a recession, although it is likely that Canada’s recession will be tougher.
“It’s going to cause a wildly deep recession in Canada. They’ll probably cause a recession in the United States. Shouldn’t be as bad as a Great Depression shouldn’t, be as bad as the bottom of COVID it’ll likely be worse than nearly all other recessions. That’s quite bad.”
The unknown of how long the tariffs will last is what will mess with the stock market the most. The impact can lead to a continuous crash to the stocks. Ontario is still fighting the States on every front that they can, to undo the tariffs. Although Gillezeau can’t give money advice he does give tips to those who have money in the market, to keep on eye on what’s going on as it could all change really quickly.
