Canada's economy rebounded sharply in the second quarter, growing at an annualized rate of 3.3%, the fastest since 2023. This recovery was aided by a 3.6% jump in exports and a 1% rebound in final domestic demand, which includes a 0.8% rise in household consumption and 2.3% growth in business investment. The first-quarter growth was also revised up to 0.3%, indicating the country avoided a technical recession. However, a new round of 50% U.S. import tariffs on $20 billion of Canadian exports, imposed this week by President Donald Trump, introduces new uncertainty into the outlook. The Canadian dollar slightly weakened after the GDP data, while 2-year government bond yields firmed.