The Globe and Mail reports in its Saturday edition that in April, Canada's manufacturing sector experienced its largest decline in four years, contracting by 1.9 per cent, while the broader economy is on track for a second quarter contraction due to U.S. tariffs affecting export-driven industries. The Globe's Nojoud Al Mallees writes that Statistics Canada reported a 0.1-per-cent drop in real GDP for the month, with a preliminary estimate for May indicating another 0.1-per-cent decline. Weak data reinforces economists' predictions of a slowdown due to the U.S. trade war, increasing pressure on the Bank of Canada for interest-rate cuts. The trade dispute intensified when President Donald Trump halted talks over Canada's impending digital services tax on major American tech companies. CIBC economist Andrew Grantham says, "The resilience that the Canadian economy was previously showing in the face of U.S. tariffs and related uncertainty appears to be fading." Tariffs have heavily impacted the manufacturing sector, especially targeting Canada's auto industry, aluminum and steel. Economists now anticipate a modest contraction in the second quarter, aligning with the BOC's scenarios from its April monetary policy report.