Bank of Canada announces interest rate cut to 2.75 per cent amid trade war concerns

The Bank of Canada has delivered its first rate announcement since the trade war between Canada and the United States ignited.

While Governor Tiff Macklem cut the bank’s policy rate by 25 basis points, he acknowledged the country is facing a new crisis, saying Canada’s central bank would not be able to offset the impacts of a trade war.

The announcement comes as the federal government rolls out yet another countermeasure, responding to today’s 25 per cent tariff deadline on steel and aluminum.

Tiff Macklem delivered the news of the rate cut while pointing out the Canadian economy had actually grown by more than 2 per cent since the fourth quarter of 2024 despite the tariffs.

Finance minister Dominic Leblanc said this exchanging of import taxes is becoming a national security issue.