Diversifying trade key to building ‘resilience’ against U.S. tariffs: Macklem

OTTAWA — The Bank of Canada is encouraging businesses to explore export markets beyond the United States to make the economy less vulnerable to the current and future trade disputes. Governor Tiff Macklem is giving a speech in St. John’s, N.L.

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

OTTAWA — The Bank of Canada is encouraging businesses to explore export markets beyond the United States to make the economy less vulnerable to the current and future trade disputes.

Governor Tiff Macklem is giving a speech in St. John’s, N.L., today where he’s discussing the impact of tariffs on Canada’s labour market and inflation.

He says in prepared remarks that it’s “very welcome news” to hear Prime Minister Mark Carney and U.S. President Donald Trump have agreed to nail down a new trade and security deal in the next 30 days.

Macklem says that while the United States will always be Canada’s biggest trading partner, diversifying exports to other markets “adds resilience” to the economy.

The Bank of Canada held its policy rate steady at 2.75 per cent earlier this month and its next decision is set for July 30.

Macklem reiterated that future cuts could be in the cards if economic growth weakens further but inflation remains contained in the trade dispute.

This report by The Canadian Press was first published June 18, 2025.

Craig Lord, The Canadian Press

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