Canadians’ expectations for the domestic economy are at their lowest level since the Covid-19 pandemic struck in March 2020.
U.S. President Donald Trump’s ongoing threats of tariffs have hurt consumer confidence, with 65% of Canadians saying they expect the economy to weaken over the next six months.
That’s the highest percentage of people with a negative economic outlook since 2020 when the pandemic began.
Only 9% of people surveyed in a recent poll by Nanos Research said they believe the Canadian economy will strengthen over the coming six months.
Trump has threatened tariffs of 10% on Canadian energy products and 25% on most other products imported into the U.S., although the administration hasn’t implemented any tariffs yet.
A prolonged trade war would most likely drive Canada into a recession, say economists, who forecast economic growth of 1.6% this year.
The Bank of Canada has warned that a U.S.-Canada trade war has the potential to do lasting damage to the national economy.
Canada buys more U.S.-made products than any other country, and nearly as much as the entire European Union.
Canadian consumer confidence was found to be lowest in Ontario and British Columbia, regions that are home to export-sensitive automotive and natural resource industries such as timber.
Canadians under age 30 are more optimistic than people 50 and older, the poll found.
The Nanos survey polled about 250 Canadians and has a margin of error of about three percentage points, 19 times out of 20.