A 25 per cent tariff on Canadian imports could yield “one of the most prolonged, problematic recessions Canada has ever experienced,” RBC chief economist Frances Donald said at an Empire Club of Canada panel Tuesday. The proposed tariff threat would trickle into multiple channels of the economy, so it’s difficult to perfectly forecast a percentage point impact on GDP, she said.  (The Logic)

Talking point: The U.S. may begin imposing tariffs on Canada and Mexico as of Feb. 1, President Donald Trump said Monday evening. The threat has already sparked fears that Canadian companies will relocate to the U.S., which is the toughest thing the country will need to address, former chief trade negotiator Steve Verheul said at the event. People may start to stockpile goods before levies come into effect, and Canada should cure its own economic “immune system,” Donald added.