Canada's largest trading partner has introduced tariffs on Canadian exports, and the resulting trade tensions will disrupt the country's growth over the next two years. The geopolitical trade policy environment remains uncertain. In the face of heightened uncertainty, Canada's institutions have remained resilient and begun a measured response to tariffs that includes targeted support for affected workers and sectors. The situation is dynamic, and we expect Canada's response will continue evolving. We have revised our base case to reflect growth of 1.4% in 2025, weaker government balances, and higher net debt. S&P Global Ratings affirmed its 'AAA' long-term and 'A-1+' short-term sovereign credit ratings on Canada. The outlook is stable. On May 5, 2024, S&P Global Ratings affirmed its ratings,
