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The Governor of the Bank of Canada has said that Canadian companies are "dealing with heightened levels of uncertainty related to US tax and trade policies."
In a statement to the House of Commons Standing Committee on Finance, Stephen S Poloz said: "We still do not know what tax changes are coming, or when. And the range of potential trade measures under discussion is even wider now than it was in January."
Among the potential issues identified are a border adjustment tax, increased industry- or country-specific tariffs, non-tariff barriers, and broader multilateral measures.
Poloz noted that the timing of the measures is uncertain, while their impact would likely vary from country to country.
"With all of this uncertainty, we cannot reliably model the impact of changes to US trade policy," he said.
According to Poloz, the Bank has therefore "built in an extra degree of caution in our forecast for exports and investment."
The Bank projects economic growth in Canada to slow from an annual rate of 3.8 percent in the first quarter of 2017 to just over two percent for the remainder of the year. It anticipates growth of just under two percent in 2018 and 2019.
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