RBC Financial Markets Monthly

Tariffs put brakes on growth momentum in Canada and the US

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The March 2025 edition of Financial Markets Monthly from RBC Economics includes a forward-looking analysis of Canadian, US and international financial market trends.

Highlights

“Persistent tariff scenarios could yield much weaker outcomes depending on how long they are left in place.”

RBC Financial Markets Monthly

  • With trade risks set to wipe out early signs of economic recovery in Canada, we expect gross domestic product growth to slow and the unemployment rate to edge higher.
  • The US economy’s run of exceptional performance faces headwinds from trade disruptions, government spending cuts and lower immigration rates.
  • Central bank outlooks are largely unchanged from last month. The Bank of Canada will continue cutting interest rates, but a sharp decline is unlikely, pending fiscal supports.
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Sources

RBC Economics, Financial Markets Monthly, March 2025