PBO trims Canadian economic forecasts amid U.S. tariffs, countermeasures

EconomicsPublished: October 20, 2026 at 10:07a.m. EDTBNN Bloomberg is Canada’s definitive source for business news dedicated exclusively to helping Canadians invest and build their businesses. OTTAWA — The Parliamentary Budget Office is trimming its outlook for economic growth for this year and next amid new U. S. tariffs and Canadian countermeasures. The federal budget watchdog says it now projects real gross domestic product growth of 0.9 per cent for this year and 1.5 per cent in 2027. The forecast is down from an estimate in June for growth of 1.1 per cent and 1.6 per cent, respectively. Latest economic news on BNNBloomberg.caTrade talks between Canada and the U. S. broke down at the end of August followed by a new round of U. S. tariffs and Canadian counter-tariffs. The PBO says it also now projects a budgetary deficit of $63.3 billion for the 2026-27 fiscal year which will peak at $70.2 billion in 2027-28. It says, relative to its June outlook, the deficits are $3 billion higher per year on average over 2026‑27 to 2030‑31, as new spending measures more than offset stronger revenues. ---This report by The Canadian Press was first published Oct. 20, 2026.

Reuters — The International Grains Council said on Thursday it had trimmed its forecast for 2026-27 global corn production with crop outlooks reduced for the United States, the European Union and India. In its monthly update, the intergovernmental body downwardly revised its forecast for 2026-27 global corn production by four million tonnes to 1.301 billion tonnes.

HomePoliticsCanada’s Prime Minister Mark Carney during a press conference Monday in the Quebec City area. Photo: La Presse canadienne / Jacques BoissinotRCIPosted: August 25, 2026 9:27 AMOttawa will announce countermeasures and new supports for Canadian workers and businesses at 11 a.m. ET. The products subject to counter-tariffs will be diverse and have readily available Canadian alternatives, sources said. U. S. President Donald Trump continued yesterday’s heated rhetoric, saying today the U. S. may change the name of Lake Ontario to "Lake America. " He also accused Prime Minister Mark Carney of lying "to gain political support. "Trump made new tariff threats yesterday, promising 50 per cent U. S. taxes on Canadian automobiles and car parts starting Jan. 1. Carney said "it's not a surprise" that the U. S. threatened more "unjustified tariffs. "Ontario Premier Doug Ford said yesterday that actions like an electricity surcharge and cutting off the province's critical minerals to the U. S. are all "on the table,” but Alberta Premier Danielle Smith was clear in ruling out disruption to oil and gas as a countermeasure.

TORONTO—Unifor welcomes the Canadian tariff countermeasures announced today but is reiterating the union’s call for stronger industrial policies and income security measures, as the trade war with the United States escalates. “Unifor has long called for Canada to fight back against Trump tariffs designed to target Canada’s industrial base and force concessions from Canada,” said Unifor National President Lana Payne. “The Canadian counter-tariffs are a good first response, but we need to take action at home to keep workers on the job by fast-tracking procurement dollars, implementing national industrial strategies, and calling on corporate Canada to step up and Buy Canadian.”In addition to dollar-for-dollar counter-tariffs on $27.6 billion worth of U. S. goods, the federal government also announced several changes to Employment Insurance (EI). The measures include extending the waiver of the one-week EI waiting period and allowing workers to receive EI without first using up separation payments, both through October 2027. They also extend the Work-Sharing Program to March 2027 and provide an additional 20 weeks of EI for long-serving workers only, through June 2027.