Canada Growth at Risk Due to Heightened Trade Anxiety: IMF

Wall Street Journal, Jun 5, 2018
by Paul Vieira

OTTAWA—Canada is in a period of heightened economic anxiety due to U.S. trade and tax policy, the International Monetary Fund said Monday, warning it could have a profound impact on investment and growth in the country for an extended period.

The warning from the Washington-based agency emerges just as tensions between Canada and the U.S. over trade took a dramatic, negative turn. Last week, the Trump administration moved to place tariffs on steel and aluminum from Canada, as well as Mexico and the European Union, on national-security grounds.

This triggered a stern rebuke from Canadian Prime Minister Justin Trudeau, referring to the tariffs as “insulting” and an affront to the longstanding U.S.-Canada cooperation on security. Since the tariff decision, President Donald Trump has criticized Canada’s agricultural policy and suggested he might prefer separate bilateral deals with Canada and Mexico as opposed to renegotiating the North American Free Trade Agreement. Talks on Nafta have stalled due to a disagreement on autos.

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