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الاقتصادية - CNN
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2026-10-19T20:38:00.000Z

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Trade talks collapse affects Canadian firms and inflation

Trade talks collapse affects Canadian firms and inflation

Canadian business expectations for the economic outlook have declined following the collapse of trade negotiations with the United States and the impact of reciprocal tariffs, according to a survey conducted by the Bank of Canada. The survey showed that trade tensions have dampened optimism since August, although sentiments remain better compared to the peak of tensions in 2025, with forecasts for growth and wages remaining stable. The survey also indicated an increase in inflation expectations due to rising input costs and selling prices, amid a decline in export sales, which raises the likelihood of monetary tightening as the October and December interest rate decisions approach. The consumer survey revealed that more than half of Canadians anticipate an economic recession in the coming year, amid concerns that inflationary pressures may spread wider.

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