MNI BRIEF: Macklem- Tariff Threat Already Dampening Canada Biz
MNI (WASHINGTON) - The prospect of large U.S. tariffs on Canadian imports as threatened by President-Elect Donald Trump is likely already inhibiting Canada's business sentiment and would damage it further if they were to be implemented, Bank of Canada Governor Tiff Macklem said Monday.
“The threat of tariffs is probably already having some impact on the investment climate here in Canada. If they do get put in place, it will have a much bigger impact. We will certainly have to take that one on board for monetary policy," Macklem said. (See MNI INTERVIEW: BOC Could Cut 50BPS Again On Tariffs-Ex Econ)
Macklem did not explicitly countenance a change in policy for now based on policy proposals from the incoming administration.
"We can't run monetary policy on something that might happen. We're talking to businesses. We're running scenarios," he said.