John Manley appears on BNN Bloomberg to discuss what US tariffs mean for the Canadian economy and why President Trump's threats to make Canada a 51st state should be taken seriously. John says:
- President Trump, "does not have the power to suspend the rules of economics." In a very short order, the imposition of steep US tariffs will cause a slowdown in the US economy and a bump in inflation south of the border.
- Prices will rise immediately in Canada after April 2 if the full impact of US tariffs is felt.
- Canada should be selective about retaliatory tariffs on goods coming into the country from the US to avoid unnecessarily raising prices for Canadian consumers.
- Canada should work closely with Europe and Mexico to respond to US tariffs.
- Canada does not have the luxury of time to pivot in its trade relationships. It will be very challenging in the near future to meet budget targets and raise revenue to maintain our standard of living.
- Getting Canada's internal economy in order is about more than interprovincial trade. It's also about cutting the length of time it takes to issue permits, simplifying regulatory complexity, reducing the overlap and duplication that adds costs to business and stifles productivity, and building the infrastructure to get our products to other markets.
- Canada needs to take President Trump seriously when he says that he wants to make Canada the 51st state. Our reliance on the US as an economic partner as well as a security partner has now come into question.
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