HALIFAX — Bank of Canada governor Tiff Macklem says the unpredictability of U.S. trade policy has increased uncertainty and could set back the recent progress by the Canadian economy.
In prepared remarks for a speech in Halifax, Macklem says the changing trade picture could cause businesses to delay investment and hiring decisions.
He says that if new U.S. tariffs remain in place, the rate of growth for the economy could be roughly halved in the fourth quarter to below one per cent.
The trade challenges come as Macklem says the war in the Middle East pushes oil and gasoline prices higher.
He says as things stand now, if oil prices stay near US$100 per barrel, the central bank would expect inflation to edge up in the coming months.
Macklem says the bank has been looking through the direct impact of higher oil prices on inflation so far, but the risk that it becomes more persistent has increased.
---
This report by The Canadian Press was first published Sept. 21, 2026.
