A US-Canada trade deal centered on lowering the most onerous US duties, like those on steel, aluminium and motor vehicles, would not stop the economy from slowing later this year, but it would improve the near-term growth outlook. In that case, the Bank of Canada would likely feel less compelled to support growth, making further policy easing less likely. However, a deal within the self-imposed 30-day deadline is not guaranteed, especially since Prime Minister Carney is reportedly refusing to budge on issues like the digital services tax, while making tariff threats of his own.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services