TORONTO – A former Bank of Canada governor says the tariffs being imposed by the U.S. will be the greatest intentional destruction of income ever.
Stephen Poloz estimates that if U.S. tariffs land somewhere in the vicinity of 10 per cent, they would reduce global income by close to or around two percentage points.
While that might not sound like a lot, he says it would equate to $2 trillion in income this year alone and $40 trillion over the next 10 years.
Because these estimates assume no retaliation from other countries, he says the destruction of income growth could be even more severe, if nations take action.
He says, like in any war, if you retaliate in a tariff battle, you can easily double your losses.
Poloz’s remarks opened an artificial intelligence symposium hosted by Western University’s Ivey Business School in Toronto today.
This report by The Canadian Press was first published Sept. 18, 2025.
