The annualized growth rate was higher than the Bank of Canada's July forecast of 2.5%. This recovery was driven by a 3.6% jump in exports, the biggest increase in over three years, and solid domestic demand, including an 0.8% rise in consumer spending and 2.3% growth in business investment. However, the economy faces renewed uncertainty after US President Donald Trump imposed a new 50% import tariff this week on $20 billion of Canadian exports, to which Canada retaliated with its own countermeasures. The Canadian dollar weakened slightly after the GDP data release, trading down 0.01% at 72.17 US cents.