Under that scenario, headline inflation would stay below 2% until late 2026. The Bank of Canada sets interest rates to achieve and maintain 2% inflation. “The removal of retaliatory tariffs on many products should help quell any lingering concerns at the Bank of Canada about tariff-induced inflation,” Mendes said.

Restaurants Canada is pleased with today’s announcement that Canada will lift its retaliatory tariffs on U.S. food products. After months of uncertainty and negative impacts, this long-awaited measure will provide relief to thousands of businesses across the country and address Canada’s affordability crisis.