08:05 AM EST, 02/14/2025 (MT Newswires) -- The United States President recently quipped that "tariff" is the most beautiful word in the dictionary, noted National Bank of Canada.

For a small, trade-dependent economy like Canada -- where the U.S. is its largest partner -- this is deeply troubling. said the bank.

As concerns about the U.S.'s trade strategy persist, this moment calls for serious soul-searching among Canadian policymakers to strengthen its economy against U.S. tariff uncertainty and restore business confidence, stated National Bank.

A good starting point is tackling "excessive" government regulation, pointed out the bank. A newly released Statistics Canada study reveals that regulatory requirements have surged 37% from 2006 to 2021, reaching 321,000, with manufacturing alone seeing a 41% increase.

The economic cost is undeniable: gross domestic product is 1.7% lower, employment is down 1.3% and business investment has plummeted 9% due to excessive red tape, according to National Bank. If that's not shooting itself in the foot, the bank considers this for Canada: at the current growth rate of 2.1% per year, regulations could exceed 350,000 by 2025.

It seems that for Canadian policymakers, "regulation" is the most beautiful word in the dictionary, added the bank.