Bank of Canada mulls Trump tariff shock as it readies interest rates decision

The Bank of Canada is expected to keep its interest rate at 2.25 per cent at Wednesday’s decision, although trade tensions have complicated the outlook. The United States recently imposed 50 per cent tariffs on Canadian exports, while Ottawa plans retaliatory measures. Economists say uncertainty could weaken business activity, employment and growth, strengthening the case for cuts. However, tariff-related costs may lift inflation. Markets anticipate another hold, with Governor Tiff Macklem likely to signal an easing bias if conditions deteriorate