Bank of Canada governor warns new tariffs could cut fourth-quarter growth in half

Bank of Canada Governor Tiff Macklem warned Monday in Halifax that new tariffs could cut fourth-quarter economic growth in half, citing risks from trade escalation and Middle East tensions that could entrench inflation above the central bank's target. With inflation at 3% and oil prices near $100 per barrel, Macklem signaled the bank may raise interest rates if price pressures persist despite tariff-related growth headwinds.