Speech summary
Mississauga Board of Trade-Oakville Chamber of Commerce
February 21, 2025
Governor Tiff Macklem discusses how a trade conflict would affect the Canadian economy and monetary policy. He also outlines what the Bank of Canada is focusing on as it renews its monetary policy framework.
Watch Governor Macklem speak to the Mississauga Board of Trade and Oakville Chamber of Commerce. Read the full speech.
Canada’s trade relationships are changing
Trade between Canada and the United States has increased over the past 60 years, with both countries acting as the other’s number one export destination. However, President Trump has threatened to impose significant tariffs on Canada’s exports. And the Canadian government has said it will retaliate. The consequences of a full-scale trade conflict would be severe.
If large and lasting tariffs are imposed, this could cause a big supply shock and a drop in demand. This would be similar to what happened at the start of the pandemic. But while Canada’s …