The tariffs, set to take effect on March 20, add a new front to a trade war largely driven by U.S. President Donald Trump's announcement of tariffs on Canada, Mexico and China and threats of protectionist measures on other nations.

The Bank of Canada has cut its benchmark interest rate by 0.25 percentage points to 2.75 per cent, the lowest since July 2022. It is the seventh consecutive cut in the central bank’s monetary easing cycle as Canada’s inflation rate has been within policymakers’ target range of about 2 per cent.