Canadian markets are nervous about how trade tensions with Canada’s largest trade partner will impact economic conditions. Canada isn’t the only country to have an uncertain outlook. Several central banks have made rate decisions in recent weeks while noting their outlooks are clouded by the threat of extensive trade disruptions. Markets will likely analyze each data release to gauge what type of impact tariffs are having on the global economy. Here’s what to watch for this week.

• Statistics Canada will release Canada’s gross domestic product (GDP) for the month of January on Friday. Canada’s economy expanded by 2.6%, annualized, in the fourth quarter of 2024. Tariffs threaten Canada’s relatively solid growth at the end of 2024.
• South of the border, two key gauges of US consumer confidence will be released this week. Consumer confidence in the US and elsewhere has deteriorated in 2025 amid economic uncertainty. The third and final reading of US GDP for the fourth quarter will be announced on Thursday.
• The US Federal Reserve Board’s key inflation gauge, the personal consumption expenditure price index (PCE), will be released on Friday. The annual PCE was 2.5% in January.
• Elsewhere around the world, European services sector activity will be announced today, the UK inflation rate on Tuesday, China’s industrial profits on Wednesday and Europe’s consumer confidence on Friday.
• Key earnings in Canada include Stelco, Lululemon and First Mining Gold. Notable earnings in the US include GameStop and Dollar Tree.

Tariffs might again grab the spotlight this week. The US is planning to implement retaliatory tariffs on April 2. Markets will seek to learn more about the size and scale of those tariffs. Canada and Mexico could also see additional tariffs after levies on certain products included in the United States-Mexico-Canada Trade Agreement were delayed at the beginning of March. It could be another jittery week for investors.

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