Economists are divided on whether the current state of affairs could push Canada into a recession, but say a lot depends on the contents on Canada's trade deal with the U.S.

Canada will rescind a tax on big US technology firms, just hours before first payments were due, to allow trade talks between the two countries to restart. On Friday, US President Donald Trump called off negotiations over a trade deal, describing the tax as a "blatant attack", and threatened higher tariffs on imports from Canada.

Talks between Canada and the United States on a trade deal are in an intense phase, Prime Minister Mark Carney told reporters on Monday, reiterating that an agreement without any tariffs at all was unlikely.