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U.S. CUSMA exit would be 'severe but not cataclysmic' for Canada: Deloitte report
The worst-case scenario would erase 163,000 jobs a year on average as manufacturing and energy sectors take the biggest hit, Deloitte said.
- A Deloitte Canada report released Thursday projects Canada's GDP could fall 1.6 per cent, or $402 billion, over the next decade if CUSMA dissolves, assuming current U.S. tariff levels as baseline.
- The United States accounted for about 70 per cent of Canada's exports in 2025, making potential CUSMA dissolution what the report's authors call "a possibility that cannot be dismissed."
- Manufacturing sectors face significant losses, with motor vehicles and parts plunging 28 per cent in real GDP and oil and gas sales dropping 11 per cent; employment would shrink by 163,000 jobs annually.
- Removing interprovincial trade barriers could generate an additional $881 billion in economic output by 2040 and create 133,000 new jobs over five years, offsetting some projected decline.
- Deloitte partner Matthew Stewart cautioned that diversification gains alone are insufficient, saying "I don't think all of this would be easily attainable, but I think we could at least achieve half of that.
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U.S. CUSMA exit would be 'severe but not cataclysmic' for Canada: Deloitte report
Boosting trade with a more diverse array of international partners would only plug part of the hole in Canada’s economy if the U.S. were to withdraw from the North American trade pact, says a new Deloitte Canada report. So Canada must look at measures beyond trade diversification to help make up the difference, such as […]
·Toronto, Canada
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Coverage Details
Total News Sources7
Leaning Left4Leaning Right0Center3Last UpdatedBias Distribution57% Left
Bias Distribution
- 57% of the sources lean Left
57% Left
L 57%
C 43%
Factuality
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