Canada's ruling Liberal party is moving on from a decade dominated by Prime Minister Justin Trudeau by capitalizing on a wave of patriotism and adopting policies designed to appeal to conservative-leaning voters turned off by U.

Economists expect the Bank of Canada will cut its benchmark interest rate next week, after U.S. President Donald Trump hit Canada with a 25 per cent tariff on non-energy imports on Tuesday and a 10 per cent levy on energy imports.

US President Donald Trump has said his tariffs on Canadian goods are necessary to force action on the migrants and drugs entering the United States through its northern border. He has also described billions of dollars in daily cross-border trade as a US subsidy and claimed Canada would not be "viable as a country" without it.

WASHINGTON (Reuters) - U.S. President Donald Trump claimed on Tuesday that U.S. banks are not allowed to do business in Canada, while their banks operate in the U.S. "Canada doesn’t allow American Banks to do business in Canada, but their banks flood the American Market. Oh, that seems fair to me, doesn’t it?," Trump said in a post on Truth Social.

Trump has imposed 25% tariffs on products entering the US from Canada and Mexico, and has increased a levy on goods coming from China. The Canadian prime minister announced retaliatory tariffs on US exports and warned that a trade war would be costly for both countries.