In its second-last rate announcement of the year, the Bank of Canada decided on Wednesday to give more support to the economy by lowering its key rate by 25 basis points to 2.25 per cent.

Speaking to reporters following the announcement, Bank of Canada governor Tiff Macklem stressed that U.S. tariffs and trade uncertainty have hurt the Canadian economy.

“Canadian businesses and households are feeling the consequences of increased U.S. protectionism,” he said. “It is difficult, and ongoing uncertainty is compounding the difficulty.”

The impacts of tariffs on the economy are clearer now than they were a few months ago. Gross domestic product (GDP) contracted 1.6 per cent in the second quarter , while the labour market is getting weaker with hiring freezes and layoffs.

The unemploym

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