Part 4/7:
Thankfully, under the leadership of Bank of England governor Mark Carney, efforts have begun to reverse some of these tariffs, particularly on USMCA-covered goods. However, tariffs on the approximately 15% of Canadian exports not covered by the USMCA remain stubbornly high, at around 35%. This ongoing tariff war continues to weaken Canada's trade prospects and, consequently, its economy.
The Fiscal Crisis Looming Ahead
Adding to Canada's economic woes is a concerning fiscal outlook. The Parliamentary Budget Officer has warned that Canada faces a fiscal cliff, reminiscent of the crisis in the 1990s, unless urgent policy changes are made. Without intervention, the country risks spiraling into massive deficits that could force severe austerity measures.