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<\/source><\/source><\/source><\/source><\/source><\/picture>Interest rates in Canada could rise and stay higher for longer if U.S. tariffs are imposed for the long term, said the OECD. <\/span> Photo by Sean Kilpatrick\/The Canadian Press<\/span><\/figcaption><\/figure>\n<\/div>\n<\/header>\n\nArticle content<\/h2>\n Canada\u2019s economy may have ended 2024 on a high note, but that could all be undone as world trade is upended by Donald Trump\u2019s tariff war, according to a new report by the Organization for Economic Co-operation and Development (OECD).<\/p>\n<\/section>\n\nArticle content<\/p>\n<\/section>\n\nArticle content<\/p>\n
The OECD cut its growth forecast for Canada by more than half Monday, and predicted knock-on effects on inflation and interest rates that could result in the cost of borrowing rising and staying higher for longer if the country ends up facing 25 per-cent tariffs from the United States and a tit-for-tat retaliation. The analysis also accounts for tariffs exchanged between China and the United States, as well as Washington\u2019s broad-based 25 per cent tariffs on steel and aluminum imports, which include Canada.<\/p>\n<\/section>\n
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