Toronto - Saturday: The Governor of the Bank of Canada, Tiff Macklem, confirmed that there are limits to the ability of monetary policy to address the repercussions of the tariff war, indicating that the bank has a clear vision regarding the potential damages that may affect the Canadian economy.

Macklem stated, in a speech delivered yesterday in Toronto, that the escalation of the trade dispute with the United States has become a new reality, making structural change in the economy inevitable.

The Impact of U.S. Tariffs on the Canadian Economy

During his remarks, Macklem reviewed the potential effects of U.S. tariffs, in the event that Washington imposes a 10% tariff on energy sector products and 25% on all other goods imported from Canada, pointing out that Ottawa will respond with retaliatory measures targeting certain U.S. products.

The governor added that this economic shock will affect various parts of Canada, as exports to the United States represent about a quarter of Canadian national income, exacerbating the challenges facing the economy amid rising trade tensions.