Canada's economy faces uncertainty from U.S. tariffs
Tiff Macklem, Governor of the Bank of Canada, expressed concern over U.S. tariffs under President Trump, which could harm the Canadian economy. If tariffs are lifted, Canada may see growth in 2025, but continued protectionism could lead to a recession. The Bank of Canada recently cut its interest rate to 2.75% to mitigate trade disruptions. Macklem emphasized a cautious approach to future rate changes, indicating that the bank will not respond as aggressively as in past crises. Consumer confidence is declining due to tariff threats, with Canadians planning to spend less. The Bank of Canada is preparing for potential economic challenges, including inflation and job losses, while also needing to support affected businesses and workers.