He warned that U.S. President Donald Trump’s tariffs have hit trade-sensitive industries hard in Canada and put economic growth on a permanently lower trajectory. To break free of its reliance on the U.S. economy, Macklem said Canada needs to develop new global markets for its products and remove internal barriers hampering productivity. He compared the situation to the 2008-09 global financial crisis and the spillover effects a U.S. collapse had on Canada at the time. Macklem noted China’s tariffs on Canadian canola are having the sharpest effect on the Saskatchewan economy. The Fed, like the Bank of Canada, cut its policy rate by a quarter point last week, though Trump had pushed for faster easing.