Macklem Warns Tariffs Could Cut Canadian Growth in Half This Quarter

Bank of Canada Governor Tiff Macklem expressed concerns about the potential impact of US tariffs on Canadian economic growth. Speaking in Halifax, Macklem said that if US tariffs remain in place, they could halve Canadian growth in the fourth quarter.

Macklem attributed this possible outcome to businesses delaying investment and hiring decisions due to the uncertainty created by the tariffs. This uncertain business climate makes it challenging for companies to plan ahead, leading to potential delays in investments and hiring.

The Bank of Canada's warning comes as the US continues to impose tariffs on Canadian goods. The exact impact of these tariffs is difficult to predict, but Macklem's statement highlights the need for caution and planning amidst economic uncertainty.