The Governor of the Bank of Canada Governor is warning that a possible trade war with the United States will have a serious impact on the Canadian economy – regardless whether Canada brings in retaliatory measures and economic packages for local businesses or not.
The federal bank lowered its key interest rate to 3 per cent in its latest adjustment yesterday.
Governor Tiff Macklem say Donald Trump’s threatened tariffs on Canadian goods heading for the states is going to be felt right across the country.
“And even when we know more about what is going to happen, I do need to be clear, it’s still going to be difficult to be precise about the economic impacts,” Maklem told reporters yesterday.
That’s because “we have little historical experience with tariff changes of the magnitude that the US is contemplating. Nevertheless, some things are clear, a long-lasting and broad-based trade conflict will badly hurt economic activity in Canada.”