The head of the Bank of Canada says a broad-based hike in American tariffs would lower U.S. economic output after about five years — whether or not other countries retaliate.
In prepared remarks of a Mexico City speech Thursday, central bank governor Stephen Poloz says attempts by countries throughout history to shield their industries and workers from foreign competition have been counterproductive.
Poloz’s remarks come as Canadian and Mexican companies face significant unknowns amid talk of fresh protectionist policies, including border tariffs, by the U.S. administration.
“We know that with protectionism everybody loses eventually, including the country that puts the policies in place,” said Poloz’s speech, which was to be delivered to the Canadian chamber of commerce in Mexico and the Club de Industriales.
“Clearly, this uncertainty is a significant issue for both Canada and Mexico.” Click here to read more.