Freeland said in her letter of resignation that she has been "at odds" with Trudeau over how to manage the public purse, especially in the context of a potential trade war with the United States.

The memo says the Liberals are seeking to use the potential trade war with the United States for political gain. It also says that NDP officials have heard rumours that Carney, who they expect will likely win, intends to call an early election.

Trade is expected to dominate discussions between the two leaders, though several sensitive issues, including the Iran war, human rights, and Taiwan, are also likely to take center stage.

Sun suggested that Mexico’s tariff measures are clearly aimed at China, especially in the aftermath of the trade war initiated by former U.S. President Donald Trump. According to Mr.

The ongoing trade war with the United States sparked by President Trump’s tariffs has made Canadians realize how economically vulnerable Canada is due to a lack of diversity in export markets.

There was also a climb down with China after both countries engaged in a brief trade war.

During the conference call with Wall Street analysts, Bastion further cautioned investors that he expects the slower-growth environment to continue well into the remainder of 2025 as the global trade war unravels and tariff questions are resolved.

Markets across the globe have faced further volatility since Tuesday evening amid fears of an escalating trade war after the White House confirmed that a punitive 104 percent rate on some Chinese imports would become a reality.

It has whipsawed over the last month amid the trade-war fears and is down 0.7 percent this year.

The new Liberal government immediately adopted an “elbows up” disposition in the brewing trade war with the USA.

-China trade war. "In response to the trade war, Tesla or other Western EV makers may consider switching suppliers, gradually removing Chinese battery suppliers from their procurement lists and favoring local producers instead," Mr. Tai said.

Trump will hit Canada with 25 percent tariffs on Tuesday, with a lower 10 percent duty for energy—laying the foundation for a trade war with America's closest neighbours.

In March, in response to the trade war with the U.S., Prime Minister Carney ordered a review of Canada’s plan to purchase a fleet of F-35 fighter jets.

–China trade war.

The Carney government is becoming pragmatic in the trade war rather than aggressive now that it is no longer chasing votes.

Thus, the trade war shows a trend of managing individual issues separately while overall escalation continues.” The TikTok logo is placed on a U.S. flag in this illustration taken on April 25, 2024.

"If these trade wars turn ugly, inflation could shoot through the roof. So, for now, the Fed is in a wait-and-see mode, but if inflation breaks past 3 percent, the talk will move toward rate increases instead of rate cuts."

The possibility of a trade war with the U.S. makes it unlikely the bank will extend its streak of cuts to seven when it makes its subsequent decision in March, said Nguyen.

The economy appears to be holding up under the weight of Canada's trade war with the United States, he explained, which means consumers are still spending and businesses are not as shy about raising prices.

Living through a dramatic and constantly fluctuating Canada–U.S. trade war, and still haunted by the prospect of becoming the 51st U.S. state, many Canadians have embraced a muscular, flag-waving patriotism rarely seen north of the 49th parallel.

She accused Trudeau of using “costly political gimmicks” rather than focusing on a potential trade war with the United States. Her resignation rattled the Liberal caucus, and an increasing number of MPs started to call for Trudeau to resign.

–China trade war and shrinking external demand. After the pandemic, consumers have lost confidence and spending power.”

Oliver said downside risks to the Aussie include a global recession and Donald Trump being re-elected and igniting a trade war with China.

Currently, even with the trade war and cost of living dominating the news, health care still is considered the top issue for 34 percent of people, according to a recent survey.

While the "trade war" between Canada and the United States peaked in early 2025, its remnants, the swelling deficit, and Canada's investment-adverse policies have all settled into a persistent weight on the economy.

Adding to the economic uncertainty is confusion over where tariffs will land and speculation about a potential trade war with China.

war.

While building flexibility in the budget for challenges brought on by the trade war, Legacy said the government will honour its main health-care promise, earmarking $4.1 billion for the department, which is about $293 million more than last year.

His former partner, Cheng Lei, was notably detained during the height the trade war in 2020 that was instigated by Beijing in response to the Australian Morrison government calling for an investigation into the origins of COVID-19.

The report said the trade war with the United States has weakened Canada’s economy, decreased demand for Canadian goods, and created additional inflationary pressures.