Headline

Bank Of Canada Cuts Interest Rates Amid US Tariff Threats

Published

11 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

Headline

Russia, China Afraid Of US Under My Administration — Trump

Published

14 hours ago

January 8, 2026

Editor

United States President, Donald Trump, has said Russia and China fear the United States because of the strength of his administration, arguing that American global influence is driven primarily by its military power and leadership.

Trump, in a post on Truth Social on Wednesday stated that rival powers would not take NATO seriously without the United States, claiming the alliance lacks deterrent force in the absence of American involvement.

He expressed doubts about whether NATO members would come to the aid of the US in a real crisis, despite Washington’s continued commitment to the alliance.

The president credited his leadership with rebuilding the US military during his first term and sustaining its strength, describing this as the key reason adversaries show respect and caution toward the country.

He maintained that America’s military dominance has played a central role in preserving global stability and saving lives.

Trump also argued that his administration forced NATO members to increase defence spending, saying many allies had previously failed to meet financial commitments while relying heavily on the US.

He added that his actions helped prevent further escalation in Eastern Europe and contributed to the resolution of multiple conflicts.

According to Trump, the United States remains the only nation that commands genuine fear and respect from both Russia and China, a position he attributed to his administration’s approach to defence, diplomacy, and global leadership.

“He wrote partly, “The only Nation that China and Russia fear and respect is the DJT REBUILT U.S.A. MAKE AMERICA GREAT AGAIN!!! President DJT.”

Headline

Trump To Withdraw US From 66 UN, International Organisations

Published

14 hours ago

January 8, 2026

Editor

United States President, Donald Trump, has announced plans to withdraw the US from 66 United Nations and international organisations, including key global bodies focused on climate change, peace and democracy.

The decision was disclosed in a presidential memorandum released by the White House on Wednesday evening, following a review of which “organizations, conventions, and treaties are contrary to the interests of the United States.”

According to Trump, the move will see the US end its participation in the affected organisations and cut all related funding.

A list shared by the White House showed that 35 of the organisations are non-UN bodies, including the Intergovernmental Panel on Climate Change (IPCC), the International Institute for Democracy and Electoral Assistance, and the International Union for Conservation of Nature.

Although listed as a non-UN body by the White House, the IPCC is a United Nations organisation that brings together leading scientists to assess climate change evidence and provide periodic reports to guide political leaders.

The memorandum also announced the US withdrawal from 31 UN entities, including the UN Framework Convention on Climate Change (UNFCCC), the UN Democracy Fund, and the UN Population Fund (UNFPA), which focuses on maternal and child health.

Several of the targeted UN bodies are involved in protecting vulnerable groups during armed conflicts, including the UN Office of the Special Representative of the Secretary-General for Children and Armed Conflict.

Reacting to the announcement, UN spokesperson Stephane Dujarric said in a note to correspondents on Wednesday evening that the organisation expected to issue a response by Thursday morning.

Despite repeatedly stating his desire to limit US involvement in UN forums, Trump has continued to exert influence on international decision-making.

In October last year, he threatened to impose sanctions on diplomats who formally adopted a levy on polluting shipping fuels that had already been agreed to at an earlier meeting, a move that stalled the deal for 12 months.

The Trump administration also sanctioned UN special rapporteur Francesca Albanese after she released a report detailing the role of international and US companies in Israel’s genocidal war on Gaza.

During his first term in 2017, Trump similarly threatened to cut aid to countries that supported a draft UN resolution condemning the US decision to recognise Jerusalem as Israel’s capital.

As a permanent member of the UN Security Council, the US wields significant influence at the United Nations, including veto power, which it has repeatedly used to block efforts to end Israel’s war on Gaza before later mediating a ceasefire.

(Aljazeera)

Headline

UK Supported US Mission To Seize Russian-flagged Oil Tanker – Defense Ministry

Published

1 day ago

January 7, 2026

Editor

The British Ministry of Defence said on Wednesday that it provided support to the United States in its operation to seize a Russian-flagged oil tanker in the North Atlantic.

US seized the tanker, which was being shadowed by a Russian submarine on Wednesday, after pursuing it for more than two weeks across the Atlantic as part of Washington’s efforts to block Venezuelan oil exports.

According to Britain, its armed forces gave pre-planned operational support, including basing following a US request for assistance.

The UK also said a military vessel provided support for the US forces pursuing the tanker, and the Royal Air Force provided surveillance support from the air.

Defence Secretary John Healey stated that the operation targeted a vessel with a nefarious history linked to Russian and Iranian sanctions evasion networks.

“This action formed part of global efforts to crack down on sanctions busting,” he said in a statement.

According to him, the US was Britain’s closest defence and security partner.

“The depth of our defence relationship with the US is an essential part of our security, and today’s seamlessly executed operation shows just how well this works in practice,” he added.

The British government said that the Bella-1 tanker, now renamed Marinera, is sanctioned by the US under its counter-Iran sanctions,

The MoD statement said the support was provided in full compliance with international law.