BMO Sees Long-Term Economic Damage Even From Optimistic Tariff Scenario

BMO Sees Long-Term Economic Damage Even From Optimistic Tariff Scenario
Prime Minister Mark Carney greets workers at Walters Group Steel fabrication plant in Hamilton, Ont., on July 16, 2025. The Canadian Press/Chris Young
|Updated:
0:00

A new report looking at some possible paths ahead for U.S tariffs finds that even the base case could mean a 1.5 percent drop in long-term GDP, while a worst case could cut five percent off growth.

The report from BMO looked at three scenarios, including a benign case that reflects current U.S. policies, which the bank figures has resulted in about a seven percent effective tariff on Canadian goods.