People Mentioned
Special Advisor, Ottawa
With the implementation of tariffs now firmly in place, their impact on the Canadian economy is beginning to take shape. Thus far, signs of inflation are present and there has been a freeze in investments in the Canadian market. The trajectory is not a positive one as Canada and the U.S. are progressing towards a recession.
CTV News Channel’s political program Power Play recently featured an episode with Osler Special Advisor, Stephen Poloz on the impact of tariffs and challenges in the Canadian economy. In his interview, he also highlights the potential to create a stronger path forward.
Speaking to host Vassy Kapelos, he shared his insights on a downturn in the labour market. Stephen says that the first part of the downward momentum is that companies stop hiring before the layoffs actually start, “… we have had quite a few layoffs in both Canada and the U.S., but they stopped hiring for several months now … unemployment for Canada is up 2.4%.”
There was hope that the emergence of declining labour and housing markets in the U.S. would prompt the U.S. administration to reconsider its approach. It appears, however, that Canadian businesses should adapt to a new structure in this period of relative uncertainty. Stephen says, “as businesses here, we need to get ready for this new structure or new world that is facing us, and it won’t be as robust or as efficient or as quickly growing as the old world. So, we need to be dealing with that as the cards are being dealt to us.”
Listen to the full episode here
People Mentioned
Special Advisor, Ottawa
