U.S. tariffs and Canada’s retaliation to them would have a devastating effect on the economy, pulling growth down while reigniting inflation, said Bank of Canada governor Tiff Macklem.
“A new crisis is on the horizon. If U.S. tariffs play out as threatened, the economic impact would be severe.”
But unlike the inflation that followed the COVID-19 pandemic, in this scenario the Bank of Canada doesn’t have a lot of tools in its toolbox to mitigate the devastating effects tariffs would have on the economy, Macklem said in a speech Friday at an event put on by the Mississauga Board of Trade and the Oakville Chamber of Commerce….