The country has dropped tariffs on a wide range of US products, a major U-turn in the trade war. It comes after Prime Minister Mark Carney said he had reached a “new economic and security relationship” with US President Donald Trump. But with almost 40% of small Canadian businesses warning they might not survive another year under tariffs, and the province of Ontario losing tens of thousands of jobs, what will this shift mean for the economy? We break down why Canada is changing course and what it could mean for businesses and consumers. Presented by Sam Gruet
Produced by Megan Lawton(Image: US President Donald Trump, right, and Mark Carney, Canada's prime minister, shake hands during a meeting in the Oval Office of the White House in Washington DC on 7/10/25. Credit: Getty Images)

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