Canada COLLAPSES： Trump Tariffs Trigger RECESSION!
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Summary
The Canadian economy has officially entered a recession. Gross domestic product fell 1.6% in the second quarter, the biggest drop since the Pandemic of the 1980s. Is it the result of the trade war with the United States? Or is it the start of a full-on recession?
Transcript
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As you're considering military force to acquire Panama and Greenland, are you also considering
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military force to annex and acquire Panama? No. Economic force. Because Canada and the United
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States, that would really be something. You get rid of that artificially drawn line and you take
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a look at what that looks like. It is the biggest GDP drop since the pandemic. Gross domestic product
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fell at a 1.6% annualized pace for the second quarter of the year. Economic force. The Canadian
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recession has already begun, so says Canada's National Post, with economists now expecting
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Canada's output to fall in the next two quarters, the definition of a recession, as exports stumble
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in the trade war with Trump. Economic force. We also agreed that we need to proceed carefully
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with particular attention to the risks and uncertainties facing the Canadian economy.
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If a weakening economy puts further downward pressure on inflation, and the upward price
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pressures from trade disruption are contained, there may be a need for a reduction in the
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All right, so Canada's economy has finally stumbled headfirst into recession. Not exactly a shocker
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to anyone paying attention. Well, maybe except for the elbows up crowd and the professional
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denialist on the left. But today, the federal government had no choice but to release the
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ugly numbers. And let's just say they don't paint a pretty picture. Canada is sliding further
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into third world status, while south of the border, the US economy is booming. And Trump?
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He's not shy about it. He's flat out declared previously that he'll take Canada economically,
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not militarily. Bold words, and honestly, can you blame him? Let's dive in.
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If you support these videos, please like and subscribe. I appreciate it.
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It is the biggest GDP drop since the pandemic. Gross domestic product fell at a 1.6% annualized
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pace for the second quarter of the year. Let's go to Sal Guterri on this, Director of Senior
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Economist at BMO Capital Markets, to talk about it. Thanks for joining us today.
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I'd say pretty well that is the case, yeah. And that's why Canada's economy was basically
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the biggest global casualty of this trade war. You had exports collapsing 27% at an annualized
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rate in the quarter, and business spending, machinery and equipment, plunged even more.
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Those are pandemic-like declines in activity. No mystery why the tariffs on motor vehicles,
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steel, aluminum, those were the real weak spots for exports. And Canadian businesses, because
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of all the uncertainty about trade policies, when things get worse, when they get better,
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really just put plans to invest on hold. And so we saw a big collapse in business investment
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Economically, we have such power over Canada. I'd rather not use it, but they did something
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with our tech companies today, trying to copy Europe. They copied Europe. It's not going
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to work out well for Europe either. And it's not going to work out well for Canada. They
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were foolish to do it. And so I said, we're going to stop all negotiations with Canada right
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The only people who thought Canada could stand a chance going toe-to-toe with an economy over
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10 times its size were the willfully blind or the poor souls watching government-paid media
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The truth is, the United States doesn't even want to cause damage to Canada. They just want
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a fair trade deal and for Ottawa to finally control its leaky northern border and drug pipelines.
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Here's the kicker though. Even the government-funded media, you know, the same folks who usually
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gaslight the public to protect their liberal buddies, they're now forced to admit the truth.
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And watching them eat crow on live television is priceless.
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If you look at GDP, the Canadian economy doesn't appear to be doing all that bad. Heck, we're
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not even in a recession. As of last count, Canadian GDP growth was just keeping its head above water,
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so the economy is technically still growing. But the numbers change considerably when you
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look at measures of worker productivity. They keep dropping. And they're projected to
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keep dropping for the next 40 years. Canadians are going to work, they're clocking in their
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eight hours, but on average, they're producing less than they used to. It's gotten to the point
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where Ontario, Canada's largest province, now has a per capita GDP roughly on par with Alabama,
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one of the poorest states in the U.S. And this is affecting our standard of living.
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University of Calgary economist Trevor Toome crunched the numbers and figured out that if
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Canadian labour productivity had instead spent the last six years keeping pace with the U.S.,
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you know, instead of remaining stagnant, we'd all be making an extra $5,500.
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Negative winds are blowing with youth unemployment worse than we thought. According to a new report,
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it's at recessionary levels. That's not good. And it means that those between the ages of 15 and 24
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are really having a tough time finding work. We sent CTV's Adrienne Gobriel to check out whether this
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Sandy, I'm here inside a youth employment services office where the CEO tells me people are arriving in
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droves desperate for work. And now one of Canada's largest banks says the increase in youth unemployment
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has surpassed levels we normally see during a recession and the troubling trend could linger.
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And here's the part that bothers me the most. The ones paying the price for all this incompetence
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aren't the well-connected or the elites. It's Canada's youth. Right now, young Canadians can't even
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land a basic entry-level job in their own country, while cheap foreign workers keep coming in thanks
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to disastrous immigration policies. But don't expect the liberal crowd to care. Their kids are
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already set up for life. It's regular folks like you and I that get stuck holding the bag. And that's
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the ugly reality. For years, Canada's Temporary Foreign Worker Program called TFWP has been a
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festering mess under the Liberal government fueling a black market in migrant permits while sidelining
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Canadian workers. A June Labor Department briefing note titled Labor Market Impact Assessment Misuse
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Exposed by Blacklocks confirms what critics long suspected. Permits are being traded like commodities
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enriching shady domestic and international operators. Now just to point out here that LMIAs
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are labor market impact assessments. They're documents required by Canadian employers to hire
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foreign workers. A positive or approved LMIA confirms that there was no Canadian citizen or
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permanent resident available for the jobs. This flood of cheap labor has suppressed wages
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and strained housing and health care. All well, Ottawa, look the other way.
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CIBC Capital Markets has shared that unemployment for those aged 15 to 24 has
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increased by more than 5.5 percent since 2022. The average uptick in youth unemployment during a
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recession typically has been around 4 percent. It is unusual to see this level of youth unemployment when
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the economy is not in an outright recession. Hey, if you've made it this far, thank you so much for
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