The Bank of Canada released a report outlining the potential economic fallout from U.S. President Donald Trump's proposed tariffs on Canadian goods. The report assumes a scenario where both countries impose retaliatory 25% tariffs, leading to lower GDP growth and higher inflation in both nations. Canada's economy faces a greater risk due to potential declines in exports and job losses.
A monetary policy report released by the Bank of Canada on Jan. 29 laid out the likely ramifications of U.S. President Donald Trump’s potential tariffs. It assumed a scenario wherein the United States does slap a 25 per cent tariff on all Canadian goods, and Canada applies a 25 per cent retaliatory tariff on American imports. Governor Tiff Macklem starts a press conference at the Bank of Canada Museum on Jan. 29 to address the bank's decision to lower the overnight interest rate.
dollar could partially offset the damage. Carolyn Rogers, the central bank's senior deputy governor, and Macklem answer questions. The Hill Times photograph by Andrew Meade On the Canadian front, the circumstances could be much worse, as Canada’s major exports could decline in volume, some American imports could become costlier, and, due to Trump's order to impose tariffs on other countries, there could be a global economic decline.
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