The Financial Post reports in its Saturday edition that Bank of Canada governor Tiff Macklem cautions that tariffs on Canada and Mexico could harm their long-term economic success and challenge central banks. The Post's Jordan Gowling writes that Mr. Macklem stated during an event in Mexico City, "If significant tariffs are imposed, they will test our economies' resilience and reduce long-run prosperity." He said: "Tariffs mean economies work less efficiently. There will be less investment and lower productivity. That means our countries will produce less and earn less." Mr. Macklem added that monetary policy cannot fully offset the impacts of tariffs and instead will have to strike a balance, weighing the downward pressure on inflation from weaker economic activity against the upward pressures from supply chain disruptions and higher input prices. He said: "In a world with more structural change and more negative supply shocks, central banks will be faced with harder choices. And harder choices bring risks of public disappointment and frustration. ... And some will challenge our independence." Mr. Macklem adds, "We need to avoid the temptation to overload monetary policy by expecting more of it than it can deliver."