1357 ET - The scope of the proposed new U.S. 50% tariff on certain Canadian goods does not meet the threshold for Bank of Canada officials to consider rate cuts, say the economics team at National Bank of Canada. The 50% levy, which is set to be imposed as soon as Aug. 19, sounds hefty but covers roughly 5% of U.S. imports from Canada, NBC says. Yet, the economists say the new 50% tariff could have economic repercussions. It gives the BOC "more reason to remain patient and refrain from near-term rate hikes despite above-target inflation," NBC says. The firm adds that this new layer of uncertainty is likely to dent business confidence, which had been improving. (Paul.Vieira@wsj.com, @paulvieira)

(END) Dow Jones Newswires

July 21, 2026 13:57 ET (17:57 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.