Canada’s economic growth accelerated last quarter and momentum carried into the start of this year as the central bank’s forceful rate cuts boosted household spending, Bloomberg News reported. Advance data suggest gross domestic product rose 0.3% in January, following a 0.2% expansion in December that ended the fourth quarter with a stronger-than-expected increase at a 2.6% annualized pace, Statistics Canada said Friday. That’s the strongest growth since the second quarter, and a pickup from an upwardly revised 2.2% increase between July and September.

President Donald Trump said he expected tariffs planned to take effect on Canada and Mexico to go ahead next month following an initial delay to allow the countries more time to address his concerns over border security, Bloomberg News reported. “The tariffs are going forward on time, on schedule,” Trump said Monday from the White House during a joint press conference with French President Emmanuel Macron. Trump was asked if the tariffs, which he delayed until March 4, would go into effect.

Canadian consumers tightened their grip on their purse strings after a holiday splurge, Bloomberg News reported. An advance estimate suggests receipts for retailers fell 0.4% in January, Statistics Canada said Friday. That would be the first contraction in seven months and follows a solid gain of 2.5% in December, which is the biggest jump since May 2022 and beat the median estimate in a Bloomberg survey of economists. A federal sales tax holiday between Dec. 14 and Feb. 15 was likely a major driver of the robust spending, although the momentum didn’t appear to last in January.

Canadian consumer prices reaccelerated for the first time in three months as the central bank’s preferred core measures are proving sticky, Bloomberg News reported. The consumer price index rose at a faster yearly pace in January, rising 1.9% and up from 1.8% in December, Statistics Canada reported Tuesday. The slight acceleration — which matched the median economist estimate in a Bloomberg survey — was largely driven by increased energy prices, while a temporary sales tax break helped slow price pressures for food and restaurant meals.

Nearly five years after Ontario went into lockdown to reduce the spread of COVID-19, small businesses are still struggling to pay back their Canada Emergency Business Account (CEBA) loans. Cathy Reid, who's owned Endless Tails Pet Nutrition Centre in Mississauga for 20 years, says she fears she may have to close. "Everybody wants me to stay. But, unfortunately, between this loan, rent being so high and purchasing the food … It's been a little bit difficult," she told CBC Toronto. Reid says she will be "devastated" if she has to leave her regular clientele and declare bankruptcy.

President Donald Trump on Thursday said he planned to impose tariffs on Canada and France over their digital services taxes on U.S. technology giants, which has been a long-standing irritant, Reuters reported. Canada, seeking to address the challenge of taxing digital giants like Google parent Alphabet and Amazon.com that can book their profits in low-tax countries, began imposing the tax in June last year. Trump tasked his economics team on Thursday with devising a plan to impose reciprocal tariffs on every country that levied duties on U.S. imports.

Investment Management Corp. of Ontario has written down its $400 million investment in Northvolt AB, the electric vehicle battery maker that filed for bankruptcy protection last year, Bloomberg News reported. The Canadian pension manager bought Northvolt convertible bonds in 2023, its largest transaction in Europe at the time. IMCO manages about C$77 billion ($53.8 billion) for public-sector groups in the province of Ontario. Northvolt filed for Chapter 11 protection in the US in November after a bid to secure rescue funding fell short, leaving it with little cash and $5.8 billion in debt.

Canadian Prime Minister Justin Trudeau said on Tuesday that Canada would seek to highlight the negative impact of the United States' steel and aluminium tariffs and that - if needed - the response from Canada would be firm and clear, Reuters reported. "Canadians will stand up strongly and firmly if we need to," Trudeau said at the sidelines of the Paris artificial intelligence summit. U.S. President Donald Trump raised tariffs on steel and aluminium imports on Monday to 25% without exemptions, aiming to revive the flagging sector but risking a broader trade war.