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Canada Holds Steady: Interest Rate Pause Signals Cautious Confidence

                      The Bank of Canada also held its policy rate at its last scheduled rate announcement in December. The Bank of Canada has opted to keep its key interest rate at 2.25% , a move that underscores a careful balancing act as the country approaches a pivotal moment in North American trade relations. With CUSMA (the Canada‑United States‑Mexico Agreement) negotiations on the horizon, policymakers appear intent on maintaining stability while assessing potential economic turbulence. The decision reflects a mix of optimism and prudence. Inflation has been easing gradually, giving the central bank some breathing room. At the same time, global economic uncertainty and the high stakes of upcoming trade talks mean officials are reluctant to introduce new variables into the financial system. By holding the rate steady, the Bank of Canada signals confidence in the economy’s underlying resilience while acknowledgin...

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Canadian Premiers Rally, Declaring Economic War in Response to U.S. Tariffs

n a rapid and resolute response to U.S. President Donald Trump’s newly imposed tariffs, Canadian premiers across the country have united in what many are calling a declaration of economic war. Leaders from provinces such as Ontario, British Columbia, and Nova Scotia have warned that these tariffs threaten to upend decades of close trade ties between Canada and the United States.

Ontario Premier Doug Ford was among the most vocal, stating that the tariffs would not only damage U.S. industries but also risk American jobs by disrupting key manufacturing and supply chains. “Canada now has no choice but to hit back and hit back hard,” Ford declared, promising retaliatory measures that target a broad range of American goods, including consumer products and even American-made alcohol.

British Columbia’s Premier David Eby added that the tariffs constitute an “economic betrayal” of a trusted ally. In a swift response, his government has already ordered state-run liquor stores to remove American products from their shelves, urging residents to opt for Canadian alternatives. Similar countermeasures are underway in other provinces, where officials have pledged to impose counter-tariffs on billions of dollars’ worth of U.S. imports.

Canadian Prime Minister Justin Trudeau has affirmed that these unilateral U.S. actions violate long-standing trade agreements and undermine the economic stability of both nations. Trudeau warned that such tariffs would hurt American consumers too, by raising the prices of everyday goods from food and energy to household appliances.

As tensions mount, the coordinated response from Canada’s provinces highlights a determined, united front. The premiers have made it clear: the U.S. tariffs are seen not merely as a trade dispute but as an existential challenge to Canada’s economic sovereignty—a challenge that they intend to meet head-on.


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