A new Bank of Canada report, yes, that Bank of Canada, just confirmed what millions of working Canadians already feel in their bones: the economy is unraveling. Consumer sentiment, the baseline mood of the average Canadian family, has collapsed. And what triggered this historic plunge? Not inflation. Not interest rates. Not even Pierre Poilievre. No—it was Donald Trump.
According to the report, which was quietly released this month, it all started on February 1, 2025. That’s when former President Trump signed an executive order slapping massive tariffs on Canadian exports, steel, aluminum, energy, potash, lumber. You name it. Up to 35% tariffs. And then, because he’s Trump, he doubled down, casually suggesting in speeches that Canada should just become the 51st state. That’s not a joke. That’s annexation rhetoric.
And here’s the kicker, the numbers don’t lie. The Bank of Canada developed a new tool, the so-called CSCE Indicator, to measure consumer expectations. It tracked 2,000 households in real time, right as the trade war ignited. And what did they find? A total wipeout of all economic optimism from 2024. Jobs? Vanishing. Spending intentions? Cratering. Financial outlook? Bleak.
So here’s what we now know, and it’s not a guess. According to their latest report, Canadian consumer sentiment has collapsed. Not dipped. Not softened. Collapsed. Across the board.
They tracked three critical things: how people feel about their financial health, their job security, and whether they’re planning to spend money. Every single one fell off a cliff. The number of Canadians who believe they'll be worse off financially next year? Surging. The odds that someone thinks they'll lose their job? Skyrocketing—especially in regions that actually produce things, places that export goods, like steel, aluminum, and lumber. And major purchases? Cars, homes, furniture? Forget it. People aren’t buying. They’re holding their breath.
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