Tariffs Could Cut Canadian Growth in Half: Macklem

Bank of Canada Governor Tiff Macklem warned that new tariffs could significantly slow economic growth in Canada, potentially cutting it in half in the fourth quarter. He made this statement during a speech in Halifax on Monday morning.

Macklem noted that the persistent trade war with the United States and conflict in the Middle East have created uncertainty for households and businesses. This has led to companies delaying investment and hiring, which could stall economic growth.

The Bank of Canada officials expect the tariffs to have a direct effect on the economy but believe growth could be roughly halved to below one per cent in the fourth quarter. The conflict in the Middle East also pushed Canada's inflation rate higher for longer, raising the risk that inflation will broaden and pass through to other goods and services.