The Bank of Canada Bank (BOC) survey for the first quarter has shown that the expectations of economic activity in general are being drastically contracted, since the United States (USA) seeks to cause a global commercial war in all areas. According to the BOC, companies are overwhelmingly willing to begin increasing prices in an effort to exceed high import taxes imposed by the Trump administration.
Outstanding aspects
- The Q1 Boc survey shows that the general feeling has deteriorated, uncertainty remains generalized.
- The business survey indicator has decreased to -2.14 from -1.16 in Q4 of 2024.
- 32% of Canadian companies expect Canada to be in recession in 12 months, compared to 15% in Q4.
- 65% of companies believe that costs will increase; 35% of companies expect to increase sales prices directly.
- Less companies expect increases in sales during the next year.
- 23% of companies expect inflation to remain above 3% over the next two years.
- 28% of companies have reported a direct decrease in total sales during the last year.
- 66.5% of Canadians expect a recession in the next 12 months.
- Consumers expect 5 -year inflation to increase to 3.39% compared to the previous 2.99%.
- The results of the survey were collected from February 2 to February 26, do not include the last announcement of Trump rates of April 2.
FAQS tariffs
Although tariffs and taxes generate government income to finance public goods and services, they have several distinctions. Tariffs are paid in advance in the entrance port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while tariffs are paid by importers.
There are two schools of thought among economists regarding the use of tariffs. While some argue that tariffs are necessary to protect national industries and address commercial imbalances, others see them as a harmful tool that could potentially increase long -term prices and bring to a harmful commercial war by promoting reciprocal tariffs.
During the election campaign for the presidential elections of November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy. In 2024, Mexico, China and Canada represented 42% of the total US imports in this period, Mexico stood out as the main exporter with 466.6 billion dollars, according to the US Census Office, therefore, Trump wants to focus on these three nations by imposing tariffs. It also plans to use the income generated through tariffs to reduce personal income taxes.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
