In a speech that has captured global attention, Carney said \u201cnostalgia is not a strategy\u201d, urging middle-sized powers who have previously benefited from the stability of US economic dominance to recognise that a new reality had set in.<\/p>\n
More than 75% of all Canadian exports go to the United States and the country remains uniquely vulnerable to Trump\u2019s protectionism.<\/p>\n
Macklem said Canadian growth remains stunted by US policy.<\/p>\n
Trump\u2019s global sectoral tariffs have hit Canada\u2019s auto, steel, aluminum and lumber industries hard.<\/p>\n
But the most severe disruptions may be yet to come, Macklem stressed.<\/p>\n
Trump has so far broadly adhered to the existing North American free trade agreement, which he signed and praised during his first term.<\/p>\n
With the United States\u2011Mexico\u2011Canada Agreement (USMCA) still holding, more than 85% of all bilateral trade has remained tariff\u2011free.<\/p>\n
But talks on updating that deal are set for this year and the Trump administration has indicated it could seek major changes, or may move to scrap the pact entirely, an outcome that would upend the Canadian economy.<\/p>\n
\u201cThe upcoming review of the [USMCA] is an important risk,\u201d Macklem said.<\/p>\n
US Fed independence <\/p>\n
Macklem also took aim at Trump\u2019s apparent efforts to exert political influence on the US Federal Reserve.<\/p>\n
\u201cThe US Federal Reserve is the biggest, most important central bank in the world and we all need it to work well,\u201d Macklem said.<\/p>\n
\u201cA loss of independence of the Fed would affect us all,\u201d he warned, but stressed that for Canada, the consequences of a politically influenced Federal Reserve would likely be far-reaching, given the integrated nature of the neighbouring economies.<\/p>\n
An independent Federal Reserve is \u201cgood for America,\u201d Macklem said.<\/p>\n
Trump has been seeking to oust Fed Governor Lisa Cook over mortgage fraud allegations. He has also spoken out on the administration\u2019s investigation into chairman Jerome Powell over the bank\u2019s headquarters renovation.<\/p>\n
In a rare rebuke this month, Powell criticised the threat of criminal charges against him, saying this was about whether monetary policy would be \u201cdirected by political pressure or intimidation\u201d.<\/p>\n
-Agence France-Presse<\/p>\n","protected":false},"excerpt":{"rendered":"In a speech that has captured global attention, Carney said \u201cnostalgia is not a strategy\u201d, urging middle-sized powers…\n","protected":false},"author":2,"featured_media":256598,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[1643,138,275,13303,1853,1887,2178,148030,71,1437,25807,106,23500,185,6722,111,139,69,1523,4481,2572,415,134104,312,15246,9939,1361,584,19096,9938,3040,1455,102],"class_list":["post-256597","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-bank","tag-business","tag-canada","tag-canadas","tag-central","tag-countrys","tag-donald","tag-echoing","tag-from","tag-global","tag-governor","tag-head","tag-impact","tag-is","tag-minister","tag-new-zealand","tag-newzealand","tag-nz","tag-over","tag-permanent","tag-president","tag-prime","tag-rulesbased","tag-says","tag-stark","tag-states","tag-that","tag-trade","tag-trumps","tag-united","tag-us","tag-warning","tag-with"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/256597","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=256597"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/256597\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/256598"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=256597"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=256597"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=256597"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}