Macklem Warns US Trade Uncertainty Threatens Canadian Economic Progress

Bank of Canada Governor Tiff Macklem warned that the unpredictability of U.S. trade policy could set back recent economic progress in Canada.

Macklem made his comments at a speech in Halifax, where he also mentioned the ongoing war in the Middle East, which has pushed oil and gasoline prices higher.

According to Macklem, if new U.S. tariffs remain in place, the Canadian economy's growth rate could be roughly halved in the fourth quarter to below one percent.

The central bank is concerned that persistent inflation could become a risk if oil prices stay near $100 per barrel.