BOC Gov Macklem says Trump’s tariff threats weighing on business, household confidence

Bank of Canada Governor Macklem speaking:

• The world looks increasingly shock-prone.
• As 2025 begins, we are facing new uncertainty with a shift in policy direction in the United States.
• President Donald Trump’s threats of new tariffs are already affecting business and household confidence, particularly in Canada and Mexico.
• The longer this uncertainty persists, the more it will weigh on economic activity in our countries.
• If significant broad-based tariffs are indeed imposed, they will test the resilience of our economies in the short run and reduce long-run prosperity.
• In a world with more structural change and more negative supply shocks, central banks will be faced with harder choices.

Last week the BoC cut rates again:

• Forexlive Americas FX news wrap 29 Jan. The BOC cuts rates by 25 bps. Fed remains steady.

And Macklem spoke along the same themes as above:

• Bank of Canada Governor Macklem says tariff threat weighing on CAD

This article was written by Eamonn Sheridan at www.forexlive.com.