According to CTV News, Prime Minister Justin Trudeau and his government are expected to address the issue during a meeting with provincial premiers on Wednesday.
Orlando explained that without retaliation, these tariffs could stall Canadian economic growth entirely.
“If 25 percent tariffs come on Canada on (a) blanket scale, and we don’t have retaliation, then we’re effectively going to get just zero economic growth in Canada with higher inflation,” he said.
If retaliatory measures are introduced, Orlando suggested the situation could worsen. “Now, if there’s retaliation, I haven’t run that scenario, but that just pushes you down even further into negative territory,” he said.
The Bank of Canada indicated that it would factor the tariffs into its economic forecasts if they materialised, Reuters reported. Orlando added that in such a scenario, the Bank might have to lower interest rates to support the economy.
