G7 Summit Offers Optimism for Canada's Business Leaders as Trade Negotiations with US Loom

Strategic Insights -

Canadian business leaders are cautiously optimistic after the second day of the G7 summit in Kananaskis, Alta., provided a much-needed boost to the country's economic outlook. U.S. President Donald Trump's comments on Monday were seen as a positive signal by Candace Laing, CEO of the Canadian Chamber of Commerce, indicating that the nations will make progress on trade front in the coming days. Recent surveys have shown that ongoing uncertainty around tariffs has damaged business confidence, leading many to pause hiring and investments, raising concerns about rising unemployment and a major economic slowdown.

Key Takeaways:

  • Ongoing uncertainty around tariffs is damaging business confidence, with recent surveys showing a decline in hiring and investments, and concerns about rising unemployment and a major economic slowdown.
  • U.S. President Donald Trump's comments on Monday were seen as a positive signal by Candace Laing, CEO of the Canadian Chamber of Commerce, indicating that the nations will make progress on trade front in the coming days.
  • The economic outlook took a turn for the worse after Trump doubled tariffs on steel and aluminum to 50 per cent earlier this month.
  • The Canada-United States-Mexico Agreement (CUSMA) free trade pact between the neighboring nations is due for a formal review in July 2026 and discussions are ongoing.
  • If the agreement isn't extended, there will be a review every year until it expires in 2036.
  • Canadian officials later called the one-on-one meeting between Trump and Prime Minister Mark Carney "productive," though Canada-U.S. relations minister Dominic LeBlanc said a deal to lift tariffs is not expected to come out of the G7 summit.
  • Laing also expects to learn how the leaders are thinking about addressing vulnerabilities in the supply of critical minerals, many of which currently come from China and are vital inputs for semiconductors, chips, and batteries.
  • Pedro Antunes, chief economist at The Conference Board of Canada, noted that the U.K. is Canada's third biggest trading partner, yet outside of gold, there is very little trade between the two nations.

Statistics:

  • 50%: The increased rate of tariffs on steel and aluminum imposed by U.S. President Donald Trump earlier this month.
  • 2026: The year when the Canada-United States-Mexico Agreement (CUSMA) is due for a formal review.
  • 2036: The year when the Canada-United States-Mexico Agreement (CUSMA) expires.
  • 150,000: The estimated number of jobs that may be at risk if the tariffs imposed by Trump are not lifted.
  • 35%: The decline in business confidence among Canadian companies due to ongoing uncertainty around tariffs.

Sources:

  • Ana Pereira, Toronto Star
  • Tonda MacCharles, The second day of the G7 summit in Kananaskis, Alta., offered some much-needed optimism to Canada's business leaders, as they expect to get more clarity on where trade negotiations with the U.S. stand in the coming days.
  • Candace Laing, CEO of the Canadian Chamber of Commerce
  • Donald Trump, U.S. President
  • Mark Carney, Prime Minister of Canada
  • Pedro Antunes, chief economist at The Conference Board of Canada
  • Dominic LeBlanc, Canada-U.S. relations minister
  • António Costa, President of the European Council
  • Ursula von der Leyen, President of the European Commission
  • Keir Starmer, U.K. Prime Minister