By David Sharlo
January 31, 2025
Excerpt from article:
According to Johnston, the impact of Trump’s tariffs will be felt by all Canadians, regardless of province of residence or size of portfolio.
“We can expect an increase in inflationary pressures, such as loss of purchasing power from Canadian dollar weakness, and recessionary pressures like increasing current account deficit and GDP contraction,” he said.
“This will be a material exacerbation of Canada’s already challenging stagflation, which is a fusion of inflation and economic growth problems.”
Johnston warns that these tariffs can reduce already low capital inflows to Canada, which, in turn, can reduce the nation’s already low investment in fixed capital. It’s a situation that puts Canadians perilously close to the dreaded state of stagflation.
Original article here