Canada has fallen into recession, a warning sign that the trade and oil wars are starting to drag down economies worldwide.

• Canada hit a technical recession — two quarters of shrinking growth — far worse than the growth economists expected.
• US tariffs and rising oil prices are the cause; Canadian car, steel, aluminum, and wood exports to the US dropped hard.
• US business confidence is collapsing too, with nearly half of executives saying the economy is worse than six months ago and a third planning layoffs.
• Canada is pivoting toward China, which offered to double its imports, while cheap Chinese electric cars start flooding the Canadian market.
• Treasury threats to re-sanction Russian oil and seize crypto are pushing countries to dump dollars and buy gold instead.

Outlook: If the Iran war and tariffs continue, more US allies could slide into recession and US borrowing costs could climb sharply.