EJQ4 - Spring 2025 - Journal - Page 36
General Market Commentary
THE BANK OF CANADA reduced its key interest rate by a quarter percentage
point to 2.75 per cent on March 12, 2025, as Canada faces an impending
economic downturn due to the trade war initiated by the new U.S.
administration.
“Depending on the extent and duration of new U.S. tari昀昀s, the economic
impact coul d be severe,” said Bank of Canada Governor Ti昀昀 Macklem in a
press conference following the rate cut. “The uncertainty alone is already
causing harm.”
After he announced tari昀昀s and then implemented a pause, U.S. President
Donald Trump ultimately re-imposed tari昀昀s of 25 per cent on Canadian
steel and aluminum. There has been a rapid-昀椀re 昀氀urry of activity and talk of
retaliatory tari昀昀s. The general reactions from experts in the environment and
energy industry indicate that this trade war puts the global clean tech supply
chains at risk. It has also taken a negative toll on the stock markets.
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