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Oil Just Hit $110 — Could Canada's Energy Boom Offset the Tariff Pain?

  Published September 13, 2026 · 6 min read Brent crude touched nearly $110 US a barrel when trading opened Friday morning — its highest level since the spring — as renewed Iran-linked strikes on Saudi energy infrastructure rattled global supply. It settled back down to close the week around $104.61, but the direction of travel has been unmistakable: oil is up roughly 9-10% in the past week alone. That's bad news at the pump. But according to a CBC News analysis published this morning, it might not be bad news for Canada's economy overall. The argument: the roughly 0.5% hit to GDP from Trump's tariffs could be more than offset by the windfall Canada earns as one of the world's biggest oil exporters. For a personal finance reader, that's really two separate stories — one that costs you money, and one that might be quietly making some of your money back. Here's how to think about both sides of your own ledger. Why oil is spiking again The latest leg up traces to ...
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Canada Braces for Lasting Economic Impact Amid U.S. Trade Tensions

 

The Bank of Canada’s Governing Council has issued a stark warning: a protracted trade conflict with the United States could permanently depress the nation’s GDP level. In recent meeting minutes, officials noted that the uncertainty surrounding U.S. trade policy—exacerbated by the threat of significant tariffs—could lead to a lasting reduction in economic output.

With nearly 75% of Canadian exports destined for the U.S., even temporary disruptions could force businesses to recalibrate their investment plans and supply chains, resulting in a permanent shift in the country’s economic potential. The central bank’s decision to trim its key policy rate by 25 basis points to 3% underscores the urgency of addressing these risks amid rising inflation pressures and subdued business confidence.

While the exact outcomes remain uncertain, the consensus among policymakers is clear: unless the trade tensions are resolved, Canada may face a long-term decline in GDP growth, along with accompanying inflationary pressures that could complicate future economic recovery efforts. The Bank of Canada plans to monitor the situation closely, ready to adjust its policy stance as needed to mitigate these challenges.


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