Stephen Poloz on the long-term effects of tariffs – BBC Talking Business Stephen Poloz on the long-term effects of tariffs – BBC Talking Business

The adjustments in the equity markets to the tariff wars are minor compared to the longer-term implications for the economy, says Osler Special Advisor Stephen Poloz in a recent interview with BBC Talking Business.

“You can’t raise tariffs — especially to the magnitude that we’ve seen — without raising prices and without the possibility of a recession,” says Stephen. “We’ll be paying a price for these tariffs literally forever.”

Stephen says considerable harm has been done to Canada-U.S. relations because of the tariffs. “The trust has been broken,” he says. “Billions of dollars have been invested with the validity of the Canada-United States-Mexico Agreement (CUSMA) framework as a given. CUSMA was considered sacred.

“In the end, we’ll have a different canvas to paint a new picture — a picture painted on Canadian terms.”

 Watch the interview