Carney bets Canada can live with tariffs to unlock investment
Economists say greater stability in Canada’s trade relationship with the U.S. could help revive business investment, which has weakened for years and dragged on productivity and growth. CIBC’s Avery Shenfeld and Manulife’s Dominique Lapointe argue that reducing the threat of escalating tariffs would give businesses greater confidence to invest, while economist Trevor Tombe warns that further U.S. tariffs could cost about 90,000 Canadian jobs. The economists’ assessment suggests that even an imperfect trade outcome could narrow the range of risks facing Canadian businesses and improve the investment climate.
