Reference News Network, January 30 report, according to AFP, January 28 report, Canada's central bank governor Tiff Macklem said on the 28th that the era of rule-based trade with the United States has "ended." This echoes Canadian Prime Minister Mark Carney's strong warning last week at the World Economic Forum: the impact of US President Trump on global trade will be permanent.
Macklem made these remarks when announcing the decision to keep the key interest rate unchanged at 2.25%, and mentioned the "unpredictability" of US trade policy.
Macklem said, "It is obvious that the era of open, rule-based trade with the United States has ended."
Over 75% of Canada's exports are sold to the United States, making the country particularly vulnerable to Trump's protectionist policies.
Trump's industry tariffs around the world have severely impacted Canada's automotive, steel, aluminum, and wood industries.
But Macklem emphasized that the worst impact may still be coming. He said, "The upcoming review of the US-Mexico-Canada Agreement is a major risk."
Macklem also said that the turbulent geopolitical environment has made Canada's recent economic outlook more complicated, which was clearly referring to events such as the forced control of Venezuela's leader Maduro, Trump's threats against Greenland, and the turmoil in Iran.
Macklem also criticized Trump's attempts to exert political influence on the Federal Reserve. He warned, "The loss of independence of the Federal Reserve will affect all of us."
Given the high integration of the two countries' economies, political interference in the Federal Reserve could have a more profound impact on Canada. (Translated by Lin Zhaohui)
Original source: toutiao.com/article/7601113000862351907/
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