Carney warns of 'tough days ahead' as tariffs make U.S. recession 'likely'

Donald Trump's latest round of tariffs is only a few days old, but the havoc they're already exerting on the global economy points to upcoming "pressure" on Canada's employment levels, Liberal Leader Mark Carney is warning.

Wednesday's announcement of new tariffs on imports into the United States from dozens of countries — along with starting the 25 per cent levy on "all foreign-made" vehicles — brought "greater certainty," Carney said Saturday, about both the U.S. president's ambitions for tariffs and the repercussions for Canada.

"We can expect pressure on employment in this economy," he said during a campaign stop in Oakville, Ont., a community vulnerable to the new auto tariffs as Ford Motor Co. is one of the area's largest employers.

Carney said the government's recent changes to employment insurance eligibility, announced before the election, will provide some support.

Those measures include waiving the one-week waiting period for workers who lose their jobs because of the tariffs.

As well, Carney repeated his pledge that a re-elected Liberal government would respond to the tariffs by building a stronger economy less connected to the United States. But he also said those actions wouldn't entirely cushion the financial blow.

"There are some tough days ahead. I'm not going to sugarcoat it," he said.

"We've seen the first signs of that in the financial markets, dramatic moves in the financial markets, which is telling Americans, Americans that are listening, that there are future job cuts, higher inflation and likely an American recession ahead."

WATCH | Carney won't 'sugarcoat' it, economic headwinds on the way:

Carney said the United Kingdom's withdrawal from the European Union serves as a cautionary tale.

"It took some time for the impacts of Brexit to filter through to the U.K. economy, but I have seen this movie before," Carney said, referring to his work managing that country's economic response to Brexit as head of the Bank of England.

"I know exactly what is going to happen … the Americans are going to get weaker."

Other party leaders didn't specifically discuss the impact of a potential recession on Saturday, but instead continued to argue they're best suited to protect Canada's interests. 

Conservative Leader Pierre Poilievre recalled a recent Fox News interview in which Trump said he'd "rather deal with a liberal than a conservative" in the prime minister's office and that Poilievre is "stupidly, no friend of mine."