The Financial Post reports in its Thursday edition that President Donald Trump's trade war is leading many economists to predict a recession for the Canadian economy this year, creating uncertainty for businesses and consumers. The Post's Jordan Gowling writes that despite the chaotic implementation of tariffs, signs of their impact on Canada are emerging. Notably, the unemployment rate is rising. The Canadian manufacturing sector lost 31,000 jobs in April, raising the unemployment rate to 6.9 per cent -- the highest since November -- due to hiring slowdowns from tariff-related uncertainty. Layoffs in April rose slightly year-over-year, indicating that companies are hesitant to make cuts while pulling back on hiring. Rising grocery prices were an early sign of the trade war, but shoppers were not fully feeling the impact due to pre-tariff inventory. As time goes on, this relief is ending. In May, Loblaw chief Per Bank warned that customers would soon face significant tariff-related price increases as existing inventory runs out.
In April, Canadian consumers faced a 3.8-per-cent increase in grocery prices compared with 3.2 per cent in March. Food price hikes have exceeded the all-items CPI for the past three months.
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