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Bank of Canada Freezes Rates as Trump’s Tariff Threat Looms Over Economy

Bank of Canada Holds Rates Steady Amid Tariff Turmoil In a widely anticipated move, the Bank of Canada has opted to maintain its benchmark interest rate at 2.75% for the third consecutive time, as trade tensions with the United States intensify ahead of an August 1 tariff deadline. Economists had unanimously predicted the hold, citing mixed economic signals: while employment remains strong, core inflation continues to hover above the Bank’s target. Governor Tiff Macklem emphasized that monetary policy cannot offset the impact of prolonged trade conflicts, reiterating the Bank’s commitment to price stability for Canadians. The decision comes as President Trump threatens sweeping tariffs on Canadian goods, including a potential 35% blanket rate and sector-specific levies on steel, aluminum, and autos. These measures have injected uncertainty into business planning and consumer confidence, with many firms scaling back hiring and investment. Despite the hold, analysts warn that further...
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Carney and Trump Fast-Track Economic and Security Deal Amid G7 Summit

Canadian Prime Minister Mark Carney and U.S. President Donald Trump have agreed to accelerate negotiations on a new economic and security agreement, aiming to finalize the deal within 30 days. The announcement comes as the two leaders meet on the sidelines of the G7 Summit, where discussions have centered on trade, border security, and critical minerals.

Carney, who campaigned on reducing U.S. tariffs on Canadian exports, is pushing for a deal that eliminates trade barriers, while Trump insists that tariffs must remain part of the framework. Despite their differing views, both leaders expressed optimism about reaching an agreement, with Trump stating that a deal is "achievable".

The negotiations have intensified in recent weeks, with Canadian officials working closely with their American counterparts to find common ground. However, concerns remain that the U.S. may not be in a rush to finalize the agreement, despite the ambitious timeline.

As talks progress, the outcome of these negotiations could reshape the economic relationship between Canada and the U.S., impacting industries ranging from steel and aluminum to border security and defense cooperation. With the clock ticking, both sides are under pressure to bridge their differences and secure a deal that benefits both nations.

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