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U.S.-Canada trade war could worsen inflation in both economies

Reported · Written up by our desk · Trade & Tariffs

MarketWatch reports that an actual U.S.-Canada trade war would likely raise inflation pressures in both countries, even though Canada is the more immediate target due to its smaller economic size.

Economists cited by MarketWatch say the U.S. would not be fully insulated either, arguing that higher costs and spillovers could still affect American prices.

The report frames the risk as heightened because neither economy could realistically absorb the macroeconomic impact without some effect on inflation outcomes.

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