Canada experienced a loss of 40,800 jobs in July 2025, marking the largest monthly decline since the COVID-19 pandemic began in 2020. This job loss was below all estimates and pushed the employment rate to its lowest level in eight months. Despite the decline in employment, the national unemployment rate remained steady at 6.9%, slightly below the estimated 7%. The labor market weakness in Canada appears to be more pronounced than in the United States, where similar economic challenges are observed. The job losses disproportionately affected young Canadians aged 15 to 24, whose employment rate dropped to 53.6%, the lowest since November 1998. The downturn in employment is attributed in part to the impact of tariffs imposed by former U.S. President Donald Trump on Canadian steel, aluminum, and automobile sectors. These tariffs have disrupted hiring plans and contributed to a broader economic slowdown. Additionally, there has been a 37% annual decrease in Canadian car trips to the United States, reflecting a sustained boycott that has lasted for seven consecutive months, further illustrating strained economic and trade relations between the two countries. The cumulative data suggest that Canada may be entering a recession amid these trade tensions and economic headwinds.