OTTAWA 鈥 Liberal Leader Mark Carney says U.S. President Donald Trump鈥檚 tariffs could do the same kind of economic damage to the United States as Brexit did to the United Kingdom, and that it will be very difficult to walk back.
Carney made the comments on an episode of 鈥淭he Prof. G. Pod with Scott Galloway” that was听posted Thursday.听
Galloway, an American entrepreneur and New York University professor, conducted the 40-minute interview with Carney earlier this week.
Carney was governor of the Bank of England when British citizens voted to leave the European Union. He warned before and after the vote that leaving the EU would damage the British economy.
Carney told Galloway that he expected Brexit to slow down the U.K. economy and cost jobs, which it ultimately did. He said the U.S. could see a similar impact from tariffs imposed recently by Trump.
鈥淲hen you look at what’s happened in the U.S., the friction this put into trading relationships is going to cause the same thing,鈥 he said. 鈥淚t is going to slow the rate of growth of that economy. It is going to affect the dollar. It has affected the dollar negatively as we’ve seen, it’s going to push up prices on the margins and so slow the economy, higher inflation, higher interest rates.鈥
Carney said most people in the U.K. now recognize that Brexit was harmful to their economy, and that the damage won’t be easily reversed.听
“It’s pretty well understood that the economic impact of Brexit has been negative in the U.K., let’s say two thirds of the people now understand that,” he said. “The path back to being closer to Europe is very difficult politically. It’s hard to rebuild that consensus.”
After bringing in sweeping global tariffs on April 2, Trump put most of them on pause for 90 days on April 9. Carney said many countries will be looking for new trading partners despite that pause, and said one of his major priorities in his first year in office would be to seek out new trading partners for Canada.
“I think the trading system is going to get reordered fairly quickly and so in the course of the first year, the question is who are we going to deepen our relationships with,” he said.听
When Galloway asked Carney what his other main priorities would be in his first year as prime minister, he said lowering trade barriers within Canada and housing.听
He said Canada has to rethink everything in this environment, citing critical minerals as an area where Canada would want different trading partners.听
“If we’re going to develop those, maybe we want to develop them as a supply chain to someone who’s not going to slap a tariff like that on us,” he said.听
Carney said Canada can also be a magnet for talented people who are looking to leave the U.S.听
“It’s quite a hostile environment in the academic world in the United States,” he said. “We can take advantage of that.”
Trump has threatened several Ivy League universities with funding cuts and mused about stripping Harvard University of its tax-exempt status after its administration refused to agree to some of his demands.听
Carney said the economic damage Trump has done to Canada has hurt the two countries’ relationship, as have the president’s comments about making Canada the “51st state.”
“On your hierarchy of betrayals, threatening somebody else’s sovereignty is pretty much the top,” he said. “When you have a loss of trust, it can be repaired to a degree. It takes a period of time and it takes action.”
In a phone call in March, Trump and Carney agreed to discuss a new trading relationship in May. He said the work on the relationship will start then, regardless of who is prime minister.
“The prime minister of Canada at that point will meet with President Trump. I want to be the prime minister at the point. I’m working hard to get there, but, they’ll sit down and start a process of redefining that relationship and building trust out from that.”
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