BNN Bloomberg: Economist breaks down impact of tariffs on Canada, U.S. economies
Canadian businesses and consumers must adapt to a “new normal” of higher but manageable duties, says Sal Guatieri, senior economist and director of BMO Capital Markets. “One way or another, we’re going to get stuck with tariffs. It’s just a question of what trade act is used to impose those tariffs,” he said, noting the U.S. economy has slowed and consumer spending shows signs of weakening despite strong business investment tied to AI. Guatieri said the recent contraction in the Canadian economy, which he expects will avoid a technical recession, was due to tariffs imposed on three sectors: steel, aluminum and motor vehicles.
