Macklem: Global economic fallout from U.S. trade war 'yet to be seen'

Governor of the Bank of Canada Tiff Macklem delivers a speech at a Calgary Economic Development event in Calgary, Alta. on March 20, 2025. Photo by THE CANADIAN PRESS/Jeff McIntosh

Canada must make urgent structural reforms to ensure its long-term economic prosperity in the wake of the U.S. trade war, the full impact of which has yet to hit the world’s economy , Bank of Canada governor Tiff Macklem said Tuesday.

“The global economic fallout from the U.S. trade war has so far been milder than first predicted — both because the U.S. tariffs are not as high as initially feared and because retaliatory tariffs were limited,” Macklem said during a speech to the Greater Saskatoon Chamber of Commerce. “But the full impact has yet to be seen.”

Macklem said Canada’s economic growth trajec