Prime Rate and the Economy: What You Need to Know.

March 13, 2025

Welcome to the latest episode of Make Money Count! Canada’s prime rate just dropped by 25 basis points. Great for borrowers, right? But this cut is a response to trade tensions and economic uncertainty. Is this a sign of bigger problems ahead?

Episode Highlights

A Trade War With Our Biggest Partner

Canada’s trade dispute with the U.S. keeps industries on edge. Premier Doug Ford scrapped a 25% energy tariff, while Trump flip-flopped on aluminum tariffs. How can Canadian businesses stay ahead in such an unpredictable market?

New U.S. Travel Restrictions for Canadians

Snowbirds staying over 30 days must now register with the U.S. government. With nearly 900,000 Canadians spending billions in the U.S. each year, why create roadblocks? Will this hurt cross-border tourism?

Tariffs and Market Instability

Inflation is steady at 2%, and Q4 2024 saw 2.6% growth. Yet, tariffs create uncertainty, especially in exports like aluminum. With constant changes—25%, 50%, then back to 25%—businesses can’t plan. How will this impact long-term investment?

Looking Ahead

Trade talks, interest rates, and market confidence will shape what’s next. What do you think—will this rate cut spark growth, or is more trouble coming?

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