Rising trade tensions between the United States and Canada pose significant economic challenges, with economists warning that tit-for-tat tariff escalations could trigger a recession. While individual tariff measures inflict measurable damage on cross-border commerce and consumer prices, the real danger lies in a prolonged trade war spiral. Analysts emphasize that without diplomatic resolution, both nations face deepening supply chain disruptions, reduced investment, and slower GDP growth. The interconnected nature of North American trade makes de-escalation critical to avoiding broader economic contraction.

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