Trump’s economic policies could bring higher inflation to the U.S., impacting both interest rates and the Canadian economy. Experts warn that proposed tariffs on imports, especially from China and Mexico, might slow the Federal Reserve's pace of rate cuts, affecting inflation and markets.
This could also influence the Bank of Canada's own rate strategies, keeping it cautious about lowering rates too quickly. With potential downward pressure on the Canadian dollar, imports could become pricier for Canadians. Meanwhile, a weaker loonie could boost Canada’s export competitiveness, but higher import costs may briefly lift inflation before stabilizing.
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