The Financial Post reports in its Thursday edition that Canada needs structural reforms for long-term economic prosperity due to the impending impact of the U.S. trade war, said Bank of Canada Governor Tiff Macklem. The Post's Jordan Gowling writes that Mr. Macklem said: "The global economic fallout from the U.S. trade war has so far been milder than first predicted -- both because the U.S. tariffs are not as high as initially feared and because retaliatory tariffs were limited. But the full impact has yet to be seen." He stated that Canada's economic growth has been permanently lowered due to U.S. trade actions and can only be improved through strong policies to boost investment and productivity. He said: "Canadian leaders need to chart a new course. We should have been making these changes 15 years ago. But the best time is now." Monetary policy cannot undo the damage from tariffs. Signs of weakness include a contraction in Canada's gross domestic product during the second quarter. Mr. Macklem proposed measures to boost Canada's economy, including removing interprovincial barriers, expanding east-west transportation links, diversifying export markets and streamlining regulatory approvals to reduce uncertainty.