Bank of Canada Governor Tiff Macklem warns that U.S. trade deficits and capital inflows are creating financial stability risks. Global capital flows are being distorted by China's export reliance, U.S. capital dependence, and weak European investment. Increased involvement of less-regulated non-bank entities adds complexity and risk to the global financial system. Macklem advocates for tackling macroeconomic problems rather than relying on protectionist trade policies.