Part 10/13:
While internal policies and structural flaws are primary culprits, external shocks—particularly the trade war initiated by Donald Trump—exacerbated Canada's downturn. Trump's imposition of tariffs, especially on Canadian machinery and oil exports, sharply contracted the economy. In 2018 and 2019, Canada's GDP shrank by 1.6% annually, worse than expected, with Canadian exports falling by 7.5% in a single quarter. Canada's heavy reliance on the U.S. market—over 50% of machinery imports and 95% of oil exports—made it especially vulnerable to these trade disruptions.