Canada: New Economy and Political Strategy

A new megatrend is emerging. Since trade relations with the U.S. worsened last year, the joint review of the USMCA has become a key factor shaping Canada’s near-term growth outlook. While focus remains on the future of the North American trade framework, the latest trade tensions appear to be part of a broader trend marked by more frequent supply-side disruptions after the global health crisis. This environment has created challenges for policymakers, who have traditionally relied on demand-side tools through business cycles, and has prompted countries like Canada to shift toward building an economy that can better withstand such shocks. Amid efforts to diversify trade and strengthen supply chain resilience, Canada’s commercial real estate sectors will experience shifting forces, driving investment toward stable, defensive, and strategically located assets.