Trade War Will Wipe out Economic Growth, Push Inflation Up: Bank of Canada Governor

Bank of Canada governor Tiff Macklem participates in a news conference on the Bank's interest rate announcement and release of the Monetary Policy Report, in Ottawa, on Jan. 29, 2025. The Canadian Press/Justin Tang

U.S. tariffs and Canada’s retaliation to them would have a devastating effect on the economy, pulling growth down while reigniting inflation, said Bank of Canada governor Tiff Macklem.

“A new crisis is on the horizon. If U.S. tariffs play out as threatened, the economic impact would be severe.”