Canada Extends Fuel Tax Pause Amid Economic Uncertainty
The Canadian government is expected to extend the pause on the federal fuel excise tax for gasoline and diesel until January 31, 2027. According to sources, Finance Minister François-Philippe Champagne will announce this measure in Ottawa today. The temporary pause was initially set to expire at the end of June.
The Bank of Canada is also set to make an interest rate decision today, with most economists and financial markets expecting another rate hold. The central bank has maintained its policy rate at 2.25% since late last year due to economic uncertainty and higher global energy prices.
U.S. Treasury Secretary Scott Bessent called for resolving the trade dispute between the United States and Canada through direct talks between President Donald Trump and Prime Minister Mark Carney.