The big picture: Deloitte Canada has lowered its 2027 economic growth forecast for Canada due to escalating U.S. tariffs, despite a stronger-than-expected performance in 2026.

Why it matters: This economic slowdown, driven by trade tensions, will impact business investment, export-oriented sectors, and ultimately, job growth and talent demand across Canada.

Between the lines:

• Deloitte cut Canada's 2027 growth forecast by 0.4 percentage points to 1.6%.
• Exports are projected to fall significantly in Q3 and Q4 2026, particularly in goods.
• The report warns of potential further escalation, including a U.S. exit from CUSMA, which could cost Canada's economy $402 billion.

Staffing & HR impact: Reduced economic growth and business uncertainty will likely dampen hiring activity and increase competition for available roles, impacting recruiter mobility and staffing firm margins. HR leaders in tariff-exposed sectors, like automotive manufacturing, must prepare for potential workforce adjustments.

The bottom line: Trade policy shifts are directly translating into economic contraction, demanding strategic workforce planning from Canadian businesses.