Canadian economy recovers sharply in Q2 but shadow of US tariffs in future

Healthy domestic demand, led by consumer spending and business investment, shows Canada was brushing off stresses from past US tariffs.Published On 28 Aug 202628 Aug 2026Canada’s economy has rebounded sharply in the second quarter after six months of virtually no growth, aided by a strong jump in exports and solid domestic demand, though a new round of tariffs from the United States brings renewed uncertainty.The economy grew at an annualised rate of 3.3 percent in the second quarter, the fastest rate since 2023, after a revised 0.3 percent increase in the first quarter, Statistics Canada said on Friday.Recommended Stories list of 4 itemslist 1 of 4‘Barrier lake’ triggers fresh floods, halts rescue at Nepal-China borderlist 2 of 4US Open 2026: All to know about the schedule, top seeds and favouriteslist 3 of 4After six months of war, what have US, Iran gained and lost?list 4 of 4US ICE agency to spend $16.7m on electric shock glovesend of listThe upward revision to first-quarter growth means Canada was not in a technical recession, usually defined as two straight quarters of contraction.Healthy domestic demand, led by consumer spending and business investment, signals the economy i...