The Financial Post reports in its Thursday, March 13, edition that the Bank of Canada cut its key interest rate by 25 basis points on Wednesday, citing trade uncertainty with the U.S. as the reason. The Post's Jordan Gowling writes that Governor Tiff Macklem noted that changing U.S. tariff threats have shaken business and consumer confidence, impacting spending and investment plans. This marks the seventh consecutive rate cut, bringing the overnight rate to 2.75 per cent. The BOC warns that a prolonged trade war could reduce Canada's growth by 3 per cent over the next two years, with investments dropping by 12 per cent and exports falling by 8.5 per cent in the first year. Mr. Macklem added that the "uncertainty alone is already causing harm." The BOC also published the results of surveys with businesses and consumers on Wednesday, which show how business and household spending sentiment has shifted. About 72 per cent of consumers expect costs to go up as a result of tariffs and 47 per cent of businesses think the same, according to a survey conducted between Jan. 29 and Feb. 28. About 48 per cent of businesses surveyed plan to reduce their investment plans and 40 per cent plan to pull back on hiring.