‘Trade is under attack,’ Macklem says. Here’s what he urges Canada must do

Tiff Macklem said Canada could undertake several policy measures to tackle the headwinds from the trade war imposed by U.S. President Donald Trump.

Canada’s economic prosperity depends on trade, and that trade is “under attack,” Bank of Canada governor Tiff Macklem said on Tuesday.

“Canada is a trading nation,” Macklem said in a copy of his speech to the Saskatchewan Trade and Export Partnership and the Greater Saskatoon Chamber of Commerce that was posted by the central bank.

He noted in the remarks that Canada depends on exports for one-third of its income.

“Unfortunately, trade is under attack,” he said.

Macklem’s speech identified several megatrends currently shaping the trade and economic landscape globally, while identifying threats to the global economy and to Canada directly.

He also spoke about several specific policy measures that are currently under discussion by political leaders in Ottawa and the provinces, saying such measures could help tackle the headwinds from the trade war imposed by U.S. President Donald Trump.

“Canadians have embraced the power of economic patriotism—elbows up. But now we need to roll up our sleeves and do the hard work to be more competitive,” he said.

He added that Canada needed to knock down interprovincial trade barriers.