Canadian rents, already dropping from peaks, could drop further from Trump’s tariffs
CIBC deputy chief economist Benjamin Tal said the steel and aluminum tariffs that Mr. Trump implemented this week would have only a small impact on bringing rental prices down, even if Canada retaliates.
On the other hand, the full-blown implementation of tariffs on Canadian goods (which has been delayed until the end of the month), followed by retaliations from Canada, could throw the economy into a recession. Multiple Canadian economists have said the country’s gross domestic product could take a hit around two or three per cent.
“Historically in a recession, rent inflation slows down,” said Mr. Tal, who added that he believes rent inflation has already hit the peak of what Canadians can realistically afford. ….[Continue Reading]