Canada Inflation Hits Three Percent Amid Ongoing US Trade Tensions

Canada's annual inflation rate hit three percent in July, driven by higher petrol prices and increased costs in tourism-related businesses. The country is bracing for new tariffs threatened by US President Donald Trump, which could further roil its economy.

The conflict in the Middle East, including the blockade of the Strait of Hormuz and the partial closure of Red Sea shipping routes in late July, put upward pressure on gasoline prices. Petrol prices rose 25.7 percent compared to July 2025.

Prime Minister Mark Carney said talks with Washington were at an 'intense and delicate' stage, but declined to discuss details. He stated it was not the time to talk about negotiations in public.