Canada’s Economy Grows 2.2% in Q1, But Don’t Get Too Comfortable

Canada’s economy grew at an annualized pace of 2.2% in the first quarter—on the surface, a solid rebound. But dig a little deeper and the momentum looks shaky. The jump was largely fueled by a surge in exports, likely driven by businesses trying to ship goods ahead of new tariff rules. That kind of growth isn’t exactly built to last, especially as domestic demand remains weak.

South of the border, investor jitters returned as U.S. stock futures slipped and oil prices dropped nearly $1. Trump’s trade war faced a court setback this week, but a federal appeals court has temporarily paused the ruling, giving his tariff push a brief lifeline.

In deal news, Strathcona Resources is going straight to shareholders with a $5.9B hostile bid for MEG Energy after getting the cold shoulder from the board. And Gap warned that tariffs could cost it up to $300M this year—news that sent its stock tumbling 15% premarket, even as Old Navy and Gap stores showed modest gains.

With global trade tensions escalating and market volatility creeping back in, the first quarter's headline growth may not be the comfort it appears to be.