0856 ET - The Bank of Canada might try to ease immediate concerns over the economic damage from escalating US-Canada trade tensions, says Ali Jaffery, chief economist at KPMG Canada. For starters, Canada tariffs on US imports, which kick in next week, mostly target intermediate goods, or inputs used to make final products, as opposed to consumer goods. Combined with the existing slack in the economy, the trade developments should not ignite immediate inflationary pressure, Jaffery tells WSJ. Canada faces two economic shocks with uneven impacts, he adds. Trade tensions will pose a drag on investment and hiring, while the Mideast conflict is keeping energy prices elevated but also lifting income in resource-rich parts of Canada. The BOC "has a very strong reason to be in wait-and-see" mode, Jaffery says.