The Bank of Canada cut its interest rate by 25 basis points to three per cent Wednesday, warning that a potential trade war with the U.S. could stunt economic growth over the next few years. Bank of Canada governor Tiff Macklem noted in his opening remarks that while inflation has held near the bank’s two per cent target since August and household spending is picking up,

The majority of Canada’s oil exports, largely produced in Alberta, go to the United States. And Alberta Premier Danielle Smith has flatly refused to entertain the option of cutting off that supply to American refineries if Trump slaps a 25-per-cent tariff on all Canadian goods, including gas and oil.