Amid American threats and pressure … major economic challenges facing Canada
In light of the accelerating economic transformations in North America, Canada finds itself in a sensitive position, as it threatens its slowdown in its economic growth and the continuation of the gap between it and the United States by redoubling the burdens it faces.
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> While the American economy is heading towards relative stability after exceeding the trauma of inflation, Canada suffers from compressive monetary policies, weak investments, and fears of the escalation of the trade conflict with Washington, and with Trump’s waving of re -imposing customs duties on steel and aluminum, the question highlights to what extent can Canada be tolerated These pressures?
& nbsp; The American, it becomes clear that the different economic performance between the United States and Canada gives Washington greater influence in any possible trade confrontation, the American economy has witnessed an annual rate of 2.8% during the past two years, while the growth rate in Canada has not exceeded 1.2% during the same period. P>
As for the labor market, the unemployment rate in the United States is still low at 4%, compared to 6.6% in Canada, which reflects a clear gap in the economic power between the two countries, says Duj Porter, chief economist at Montreal Bank. , For & quot; Axios & quot;: & quot; Central banks to raise interest rates sharply, in an attempt to curb prices, but in Canada, this procedure led to additional financial pressure, especially since real estate loans were modified and re -priced in just three years, which increased the burdens on Canadians. /P>
Unlike the United States, in which the Federal Reserve slowed down interest rates, Canada began to reduce interest at a faster pace since June, as it reduced it by two percentage points, which is a higher percentage by a full point of cumulative discounts made by the American Federal Reserve , And that has been suspended now. Prepare in monetary policies between the two countries & quot;
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Imposing customs duties
besides internal economic challenges, Canada faces another danger to the threat of US President Donald Trump re -imposing customs duties up to 25% on steel and aluminum imports, and this step is expected to be announced on Monday; It is an anxiety of Canada as the main supplier of US steel imports. The imposition of customs duties will lead to a decline in Canadian exports of steel, which will harm the manufacturing sector and negatively affect the labor market. At the same time, the financial markets are betting on these measures, as the shares of American steel companies have witnessed a remarkable increase in recent days. In which Canada faces this type of commercial challenge. In 2018, Trump imposed similar customs tariffs on steel and aluminum; This led to a decrease in Canada’s exports of aluminum by 20%, and its steel exports decreased by 40%, according to a report issued by the Canadian TD Bank. Unemployment and inflation rates have also remained in stable levels, but the economic situation today is very different from 2018, as the Canadian economy is already suffering from slowdown, weak investments, and high borrowing costs, which may make the impact of customs tariffs more cruelly this time. >
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