The trade dispute has intensified with U.S. President Donald Trump imposing 50% tariffs on a wide range of Canadian goods. Canada has announced retaliatory tariffs, due to take effect on September 8 and impacting over $20 billion in goods. Analysts from Bank of America and Goldman Sachs expect the trade war to weigh on Canadian growth and boost inflation, likely leading the BoC to maintain a cautious stance or keep rates on hold. The BoC last left its benchmark rate unchanged at 2.25% in July, while Canada's Q2 GDP grew 0.8% and July inflation accelerated to 3%.