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Bank Of Canada Cuts Interest Rates Amid US Tariff Threats

Published

7 months ago

January 30, 2025

The Bank of Canada on Wednesday, cut its key lending rate 25 basis points to 3.0 per cent, noting that US tariff threats are creating uncertainty for the economy.

“The economy is expected to strengthen gradually and inflation to stay close to target (of two per cent),” the central bank said. “However, if broad-based and significant tariffs were imposed, the resilience of Canada’s economy would be tested.”

“A protracted trade conflict (with the United States) would most likely lead to weaker GDP and higher prices in Canada,” it added.

US President Donald Trump has said he would slap 25 per cent tariffs on imports from US neighbours Canada and Mexico as early as February 1.

READ ALAO: Canada To Reduce Immigration By 21% In 2025

Retaliation by Canada in the form of matching counter-tariffs, which officials have told AFP are already in the works, risks leading to a trade war between the two allies.

Canada’s central bank said the situation has created “more-than-usual uncertainty” with the scope and duration of such a trade conflict “impossible to predict.”

It noted that the Canadian dollar has depreciated materially in advance of the tariffs being imposed. Oil prices have been volatile and rose above the bank’s last projection in October 2024.

Overall, the Canadian economy has recently picked up, despite weak business investment and a soft labour market, with both strong consumption and housing activity expected to continue.

The bank, however, lowered its growth forecast to 1.8 per cent in both 2025 and 2026, down from 2.1 per cent and 2.3 per cent, respectively.

The central bank has been aggressively cutting interest rates since last June, and with inflation now largely under control analysts are tentatively expecting rates to be reduced by a further 75 basis points by year’s end.

But tariffs, according to the central bank, would see Canadian exports — which mostly go to the United States, represent 20 per cent of Canada’s economy and support almost two million jobs — plunge.

There would also be significant job losses a further depreciation of the Canadian dollar and drop in business investment.

In a baseline scenario, the bank said Canadian GDP growth would be 2.5 percentage points lower than with no tariffs in the first year, and 1.5 percentage points lower in the second year.

“Unfortunately, tariffs mean economies simply work less efficiently — we produce and earn less than without tariffs. Monetary policy cannot offset this. What we can do is help the economy adjust,” central bank governor Tiff Macklem said.

TD Bank economist James Orlando commented in a research note: “We are still hopeful that tariff threats are more of a negotiation tactic, meaning they would be temporary and carry less long-term impacts.”

AFP

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Six Dead, Others Trapped As Gold Collapse

Published

2 hours ago

September 6, 2025

Editor

Six people have been killed and up to 20 others are feared trapped after a gold mine collapsed in northern Sudan, authorities said on Saturday.

The accident occurred on Friday in the Um Aud area, west of the city of Berber in River Nile state, said Hassan Ibrahim Karar, executive director of the Berber locality.

“Efforts are ongoing to rescue those trapped beneath the rubble,” Karar said, without specifying the cause of the collapse of the artisanal mine.

Since fighting erupted in April 2023 between the army and the paramilitary Rapid Support Forces, both sides have largely financed their war efforts through the country’s gold industry.

Official and NGO sources say nearly all of Sudan’s gold trade is funnelled through the United Arab Emirates, which has been widely accused of supplying arms to the RSF — a charge it denies.

Despite the conflict, the army-backed government announced record gold production of 64 tonnes for 2024.

Sudan, Africa’s third-largest country by area, remains one of the continent’s top gold producers.

However, most gold is extracted through artisanal and small-scale mining operations, which lack proper safety measures and often use hazardous chemicals, resulting in severe health risks for miners and nearby communities. Buy vitamins and supplements.

Before the war pushed 25 million Sudanese into acute food insecurity, artisanal mining employed more than two million people, according to industry figures.

Today, mining experts say much of the gold produced by both warring factions is smuggled through Chad, South Sudan and Egypt before reaching the UAE — currently the world’s second-largest gold exporter.

The conflict has claimed tens of thousands of lives and displaced roughly 10 million people, creating the world’s largest displacement crisis. An additional four million Sudanese have fled across borders.

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Popular Nail Polish Ingredient Banned Over Fertility Fears

Published

9 hours ago

September 6, 2025

Editor

The European Union has outlawed the use of TPO in all cosmetic products as of September 1, citing evidence that it may cause long-term fertility problems. The move forces nail salons in all 27 EU countries, as well as Norway and others that follow EU rules, to stop offering TPO-based gels and safely dispose of their stock. Manufacturers will now be required to reformulate their products without the chemical.

TPO has been a staple in the beauty industry, used as a photoinitiator to harden polish quickly under ultraviolet light and give manicures a glossy, long-lasting finish. But while gel polish has been praised for staying chip-free for weeks, experts say the ingredient behind its durability may carry hidden dangers.

Industry insiders expect the UK and other countries to follow suit with a similar ban by late 2026. The US, however, has yet to propose any such restrictions, though American salons that import products from Europe could be affected.

“This ingredient could not be defended. The industry was unable to prove there were no safer alternatives,” said Francesca Rapolla of the UK’s Cosmetic, Toiletry and Perfumery Association.

Still, not everyone agrees with the ban. Belgian retailer ASAP Nails and Beauty Supply warned of “major economic damage” to small businesses and argued there is “no human evidence of danger”. Meanwhile, US-based consultant Doug Schoon criticised the EU’s decision as “disproportionate”, saying it would waste safe products and undermine confidence in regulators.

The controversy comes amid growing scrutiny of chemicals in everyday cosmetics. Experts warn that toxic compounds, including endocrine disruptors, may contribute to rising cases of infertility, diabetes, obesity, and certain cancers. One striking trend is the surge in endometriosis cases — a painful condition linked to infertility — as global cases have risen to nearly 190 million. Scientists believe endocrine-disrupting chemicals such as phthalates and now TPO could be a driving force.

“These chemicals can linger in the body for years, stored in fatty tissue. They affect the immune system, disrupt hormones, and in some women, may trigger reproductive problems and endometriosis,” said Professor Katie Burns of the University of Cincinnati.

For now, Europe has chosen precaution over profit. The debate over TPO could prove a turning point in the battle over hidden toxins in beauty products — and their long-term toll on women’s health.

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Trump Threatens Severe Consequences Against ‘Wrongful’ Detention Of U.S. Nationals Abroad

Published

10 hours ago

September 6, 2025

Editor

Trump threatens severe consequences against ‘wrongful’ detention of U.S. nationals abroad
U.S. President Donald Trump has signed an executive order to protect U.S. nationals from what he termed “wrongful detention” abroad.

U.S. Department of State, in a statement issued on Friday, threatened severe consequences for those who “wrongfully” detain Americans abroad.

“Today, President Trump signed an Executive Order that takes unprecedented action to impose new consequences on those who wrongfully detain Americans abroad,” the statement read.

“Through this Executive Order, actors designated as State Sponsors of Wrongful Detention may face severe penalties,” the statement added.

The penalties include economic sanctions, visa restrictions, foreign assistance restrictions and travel restrictions for U.S. passport holders, according to the statement.

“Like the State Sponsor of Terrorism determination, no nation should want to end up on this list.

“The bottom line: Anyone who uses an American as a bargaining chip will pay the price.”

This administration is not only putting America first but also putting Americans first, the statement said