Nearly five years after Ontario went into lockdown to reduce the spread of COVID-19, small businesses are still struggling to pay back their Canada Emergency Business Account (CEBA) loans. Cathy Reid, who's owned Endless Tails Pet Nutrition Centre in Mississauga for 20 years, says she fears she may have to close. "Everybody wants me to stay. But, unfortunately, between this loan, rent being so high and purchasing the food … It's been a little bit difficult," she told CBC Toronto. Reid says she will be "devastated" if she has to leave her regular clientele and declare bankruptcy.

President Donald Trump on Thursday said he planned to impose tariffs on Canada and France over their digital services taxes on U.S. technology giants, which has been a long-standing irritant, Reuters reported. Canada, seeking to address the challenge of taxing digital giants like Google parent Alphabet and Amazon.com that can book their profits in low-tax countries, began imposing the tax in June last year. Trump tasked his economics team on Thursday with devising a plan to impose reciprocal tariffs on every country that levied duties on U.S. imports.

Investment Management Corp. of Ontario has written down its $400 million investment in Northvolt AB, the electric vehicle battery maker that filed for bankruptcy protection last year, Bloomberg News reported. The Canadian pension manager bought Northvolt convertible bonds in 2023, its largest transaction in Europe at the time. IMCO manages about C$77 billion ($53.8 billion) for public-sector groups in the province of Ontario. Northvolt filed for Chapter 11 protection in the US in November after a bid to secure rescue funding fell short, leaving it with little cash and $5.8 billion in debt.

Canadian Prime Minister Justin Trudeau said on Tuesday that Canada would seek to highlight the negative impact of the United States' steel and aluminium tariffs and that - if needed - the response from Canada would be firm and clear, Reuters reported. "Canadians will stand up strongly and firmly if we need to," Trudeau said at the sidelines of the Paris artificial intelligence summit. U.S. President Donald Trump raised tariffs on steel and aluminium imports on Monday to 25% without exemptions, aiming to revive the flagging sector but risking a broader trade war.

President Donald Trump on Monday agreed to a 30-day pause on his tariff threats against Mexico and Canada as America’s two largest trading partners took steps to appease his concerns about border security and drug trafficking, the Associated Press reported. The pauses provide a cool-down period after a tumultuous few days that put North America on the cusp of a trade war that risked crushing economic growth, causing prices to soar and ending two of the United States’ most critical partnerships.

Canadian manufacturing activity increased at a slower pace in January as looming U.S. trade tariffs reduced confidence in the outlook, even as moves by clients to get ahead of the taxes led to the first increase in export orders in 17 months, Reuters reported. The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) fell to 51.6 in January from 52.2 in December. Still, it was the fifth straight month above the 50.0 no-change mark. A reading above 50 indicates expansion in the sector. U.S.

The Canadian economy gained strength at the end of last year, fueled by a rapid series of interest-rate cuts, as the northern nation braces for the Trump administration’s threatened 25% tariffs, Bloomberg News reported. Advance data suggested gross domestic product grew 0.2% in December, Statistics Canada said Friday. That’s a reversal from a 0.2% decline in November, the largest monthly contraction since December 2023 and weaker than a median estimate of a 0.1% drop from economists in a Bloomberg survey.

The Bank of Canada on Wednesday cut its benchmark rate for a sixth straight time, and warned of a significant shock to the economy from a U.S.-Canada trade conflict with tariffs of up to 25%, the Wall Street Journal reported. Bank of Canada Gov. Tiff Macklem said the central bank would be limited in offsetting the damage from a trade row, because policymakers would have to wrestle with both weaker growth and higher prices. The central bank sets interest rates to achieve and maintain 2% inflation.