Last week, Canadian and US trade negotiators worked towards a trade deal. However, talks fell apart at the last minute, resulting in the US imposing 50% tariffs on C$28 billion of Canadian imports beginning on Saturday. Canada pledged to impose retaliatory tariffs. Looking at the week ahead, investors will get a glimpse of the overall health of Canada’s economy when its gross domestic product is announced. Data is pointing to the Canadian economy having expanded in the second quarter of 2026. There will also be several critical economic announcements globally for investors to monitor, along with any updates on tensions in the Middle East.

• Canada’s economic growth rate in the second quarter will be announced on Friday. Canada’s economy shrank at an annualized pace of 0.1% in the first quarter. Economists are expecting a relatively strong rebound in the second quarter, according to a survey by Bloomberg.
• In the US, the personal consumption expenditure price index (PCE) will be released on Wednesday. The PCE is the preferred inflation gauge of the US Federal Reserve Board. The PCE rose by 3.7% year-over-year in June.
• Looking abroad, China’s industrial profits will be released on Wednesday, Mexico’s balance of trade on Thursday, Japan’s unemployment rate on Thursday night and European consumer confidence on Friday.
• CIBC will announce its fiscal third-quarter earnings on Thursday. The other big five banks will announce earnings throughout the week. Key earnings in the US include NVIDIA, Dollar General and Marvell Technology.

Trade disruptions with the US persist. Furthermore, how these failed talks might impact the Canada-United States-Mexico Agreement review adds to consumer and business uncertainty. Canada’s economy has shown signs of improving in the second quarter, despite trade and geopolitical tensions, demonstrating the resiliency of Canada’s consumers and businesses.

If you would like to discuss this economic and market update or have questions about your finances and investments, please feel free to contact me anytime.