The United States and Canada are locked in an escalating trade dispute, raising fears that prolonged tariffs and retaliatory measures could slow economic growth and push both countries towards recession.
Businesses on both sides of the border are facing higher costs as tariffs make imported goods and raw materials more expensive. Some companies may pass those costs on to consumers, while others could reduce production, investment or hiring.
Canada and the US have deeply connected economies, with billions of dollars worth of goods and services crossing their shared border every year. Disruptions to this trade could therefore affect industries ranging from manufacturing and agriculture to energy and retail.
Economists warn that if the dispute continues, weaker business activity and declining consumer spending could increase the risk of recession. The effects could also spread beyond North America by disrupting global supply chains and trade.
Government officials on both sides have defended their positions, but businesses and investors are calling for a resolution to the dispute to prevent further economic damage.