Canada in February 2026: the most important developments in economy
Canada's economy in February 2026 was shaped by trade tensions with the United States. On February 12 the US House of Representatives voted to overturn the tariffs President Donald Trump had placed on Canada, with six Republicans joining Democrats; the measure moves to the Senate. Trump was reported to be weighing a US exit from the USMCA trade pact, said the US would respond in a 'very substantial' way if Canada enacts a trade deal with China, and threatened to block the opening of the Gordie Howe International Bridge. The US Trade Representative said any new trade deal with Canada must include higher tariffs. On February 24 Transport Canada certified all newer Gulfstream business jet models, a move seen as resolving a long-running trade dispute.
Canada also looked to other markets. China will suspend some agricultural tariffs on Canadian goods, including canola meal, from March 1, after a visit by Prime Minister Mark Carney. Mexico and Canada announced a joint economic action plan, and the oil industry is turning its exports toward Asia. The government said it will increase investment in electric vehicle supply chains as US trade policy disrupts the auto industry.
Cuba's fuel shortage reached Canadian business. Air Canada, WestJet and Air Transat cancelled all flights to Cuba and worked to bring thousands of tourists home, citing a jet fuel shortage linked to US oil restrictions. Sherritt International suspended its nickel-cobalt mining on the island. Ottawa faced calls to send oil and humanitarian aid, and by February 23 it was preparing an aid package.
Elsewhere, Canada's economy contracted unexpectedly in the fourth quarter of 2025, with full-year growth of 1.7%. The Toronto stock index closed at a record high on February 24. Oil and gas deals worth $38 billion marked a record wave of consolidation. Glencore suspended its plan to upgrade a Quebec copper smelter after talks with the provincial government on emissions limits broke down. CPP Investments halted new deals with port operator DP World over its chief executive's past ties to Jeffrey Epstein.
by WorldBrief & Maksim Micheliov | AI-generated summary
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