The Canadian Finance Recap
Here’s a quick breakdown of the 3 biggest economic stories shaping our wallets and investments last week:
1. Tariffs: Canada Eases Up (Mostly)
Canada is removing many of its retaliatory tariffs on U.S. goods.
The U.S. confirmed it won’t add new tariffs on Canadian products under the CUSMA trade deal, so Canada is matching the move.
But not everything’s back to “free trade.” Tariffs on autos, steel, and aluminum are still staying in place.
PM Carney says this restores “free trade for the vast majority of our goods.” It could also help smooth the path for a new Canada-U.S. trade & security deal.
📌 What this means: More goods could get cheaper to trade across the border, but Canada is still holding firm on key industries.
2. Inflation Finally Cooling Down (But Not at the Grocery Store…)
Canada’s inflation rate eased to 1.7% in July(down from 1.9% in June).
Gas prices fell a huge 16.1% vs last year, thanks to cheaper oil and the carbon tax removal.
Food prices are still climbing… up 3.4%, with coffee, cocoa, and fruit leading the increase.
Rent surged 5.1%, making life tougher for renters.
By province: Quebec now has the highest inflation rate (2.3%), while Ontario, B.C., Alberta, Saskatchewan, and Manitoba all cooled down.
The Bank of Canada’s “core inflation” is softening too, which means a rate cut in September is officially on the table.
📌 What this means: Cheaper gas is helping, but groceries and rent are still painful. If the BoC cuts rates, borrowing costs could finally ease for Canadians.
3. Housing Market
Buying a home in Canada just got much tougher…
Home Sales jumped 6.6% compared to last year, marking the 4th straight monthly increase.
Ontario, B.C., and Alberta are driving most of the gains, while Quebec and Atlantic Canada slowed down.
The average home price is now $673,000.
Experts warn this rebound could tip into a seller’s market by 2026 if demand keeps outpacing supply. Even with more listings expected this fall, affordability and weaker job growth are still big challenges.
📌 What this means: First-time homebuyers may feel squeezed as prices creep up again, while investors and sellers could benefit if the rebound sticks.
✅ In short:
Trade with the U.S. just got friendlier (but autos/steel/aluminum industries stay under pressure).
Inflation is cooling, giving the Bank of Canada a green-ish light for possible interest rate cuts.
The housing market is heating back up, making life harder for new buyers but boosting sellers.
💡 Takeaway for young investors:
These shifts in trade, inflation, and housing are all connected. Lower inflation could mean lower interest rates, which fuels housing demand. Stronger trade could help the economy, but affordability remains a huge issue for everyday Canadians.