U.S. Uncertainty Puts Canada on Pause

The video discusses Canada's economic rebound, highlighting positive signs in employment and exports. However, concerns remain due to uncertainties, particularly regarding NAFTA renegotiations and fiscal policy challenges. The Bank of Canada is cautious, waiting for more information on U.S. policies. The potential delay in Canada's federal budget is noted, with pressure on Finance Minister Bill Morneau to account for risks. Job growth in Canada is strong, but the impact of a possible 10% tax on U.S.-Canada trade is a concern.

What are some positive indicators of the Canadian economy mentioned in the video?

• Increased inflation rates

• Higher interest rates

• Rising employment and exports

• Decreased foreign investments

Why is the Bank of Canada adopting a cautious approach?

• Due to a stable economic environment

• Due to high inflation rates

• Because of uncertainties related to Trump's policies

• Because of a strong Canadian dollar

What is a major challenge in crafting Canada's fiscal policy?

• Potential renegotiation of NAFTA

• Lack of foreign investments

• High unemployment rates

• Rising oil prices

What might Finance Minister Bill Morneau need to include in his budget projections?

• Higher interest rates

• Risk cushions

• More government spending

• Increased tax rates

What is the expected impact of a 10% tax on goods crossing the US-Canada border?

• 9% hit to the value of Canada's imports

• Decrease in US imports

• Increase in Canadian exports

• No significant impact