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Canada's housing market is experiencing significant strain due to the ongoing trade tensions initiated by U.S. President Donald Trump. According to a report by the Royal Bank of Canada (RBC), housing resales have declined across the country, with the most pronounced decreases observed in southern Ontario and British Columbia. RBC economist Robert Hogue attributes this downturn to the economic uncertainty stemming from the trade war, which has made potential homebuyers hesitant to commit to large financial investments like purchasing a home.

The broader economic implications of the trade war are also evident in Canada's labor market. Recent data indicates a rise in the national unemployment rate from 6.7% to 6.9%, with Ontario experiencing significant job losses, particularly in the manufacturing sector. Experts suggest that these developments are directly linked to the trade tensions, as tariffs and other trade barriers disrupt industries and lead to job cuts.

Financial institutions are also expressing concern over the long-term effects of the trade war. The Bank of Canada's Financial Stability Report highlights that prolonged trade conflicts could lead to increased credit losses for banks, especially those with significant exposure to trade-sensitive sectors. Such financial strain could compel banks to tighten lending practices, further exacerbating economic challenges.

Read the full article on: Global NEWS