07:04 AM EDT, 09/24/2025 (MT Newswires) -- Speaking at the Saskatoon Chamber of Commerce Tuesday, Bank of Canada Governor Tiff Macklem said economic growth and employment continue to face headwinds from trade frictions, according to Bank of Montreal (BMO).

He noted that these trade tensions involve not only the United States but also China, and added that monetary policy alone cannot reverse the damage caused by tariffs.

A chart Macklem presented illustrated the Bank of Canada's assessment of the country's economic path before and after the imposition of hefty tariffs. He said monetary policy can provide short-term support, but improving productivity and attracting investment will be key to getting activity back on track.

All players in the economy, governments, businesses and workers, will have to do their part to fully address the productivity challenge, BMO added.