The Globe and Mail reports in its Tuesday edition that even without across-the-board tariffs, pressure cracks are starting to form. The Globe's Tim Shufelt writes that major projects are being shelved, business owners are preparing for layoffs and some companies are considering leaving Canada altogether. The federal government has alluded to a potential pandemic-style stimulus package should U.S. President Donald Trump make good on his tariff threats. That is not quite the right response, said Robert Kavcic, senior economist at Bank of Montreal. When COVID-19 struck, the feds committed many billions of dollars in direct support to households and businesses. That was effective in helping the country weather a severe, but largely short-term, economic shock. "We argue this episode should be rooted in pro-growth policy that will drive business investment," Mr. Kavcic said. "Create the conditions for businesses to adjust rather than just putting them on life support." Things such as tax incentives and cutting interprovincial trade barriers could help shift the calculus in getting businesses to deploy capital. Fortunately, there does seem to finally be some real momentum to liberalizing trade in Canada. It's a start.
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