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Trump's Tariff Shake-Up: Global Trade Faces New Challenges

On April 2, 2025, U.S. President Donald Trump announced sweeping 10% tariffs on imports from all trading partners, marking a significant escalation in global trade tensions. These tariffs, described as "baseline," aim to address what Trump perceives as unfair trade practices and chronic trade deficits. While the announcement has sent ripples across international markets, the specific impact on Canada remains uncertain. Canada, a close trading partner of the U.S., has previously faced tariffs on steel, aluminum, and energy imports under Trump's administration. The new measures could further strain bilateral relations and affect key Canadian industries. Prime Minister Mark Carney is reportedly preparing Canada's response, as the trade war becomes a central issue in the upcoming federal election. Trump's move has sparked debates among economists and policymakers, with critics warning of potential economic fallout and supporters praising the tariffs as a step toward ...
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Deloitte Canada predicts rate cuts by Bank of Canada in 2024

 

The Bank of Canada may soon begin to lower its benchmark interest rate, according to a new report by Deloitte Canada.

The consulting firm expects the central bank to start easing rates in the second quarter of 2024, as inflation pressures subside and the economy faces headwinds from higher borrowing costs.

Deloitte Canada forecasts that the overnight target rate will drop to 4.25 per cent by the end of the year, from the current level of 5 per cent.

However, the firm cautions that the Bank of Canada will not return to the ultra-low rates that prevailed before the pandemic, and that interest rates will still have a negative impact on spending and investment decisions in 2024.

The Bank of Canada has raised its key rate five times since the start of the pandemic, in response to surging inflation that reached 7.1 per cent in November 2023.

The central bank has signaled that it is done with hiking rates for now, and that it will monitor the evolution of inflation and economic activity.

Some market participants and economists expect the Bank of Canada to cut rates more aggressively than Deloitte Canada, with some predicting a 150-basis-point reduction by the end of 2024.

Deloitte Canada chief economist Dawn Desjardins said that the Bank of Canada will act cautiously and only cut rates when it is confident that inflation will return to its 2 per cent target.

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