Local Opinion

By Paul Hannon

A further rise in U.S. tariffs on imports from the European Union likely won't halt the decline in the eurozone's rate of inflation, which has given policymakers the confidence to lower borrowing costs again, the head of the Bank of France said in an interview published Wednesday.

"The Trump tariffs are not expected to significantly alter this European disinflation," Francois Villeroy de Galhau said in an interview with Midi Libre.

The eurozone's annual rate of inflation fell to 2.2% in March from 2.3% in February, edging closer to the ECB's 2% target.

"This should give us more confidence to lower our interest rates further in the near future," he said.

The ECB has lowered its key rate in each of its last five policy meetings. Policymakers meet again later this month.

Write to Paul Hannon at paul.hannon@wsj.com

(END) Dow Jones Newswires

April 02, 2025 13:12 ET (17:12 GMT)

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By Paul Vieira

OTTAWA--Canadian retaliation against President Trump's tariff reveal on Wednesday needs to be narrowly focused to avoid causing broad damage to the economy, says Conservative Party Leader Pierre Poilievre.

Poilievre, who is bidding to become the country's prime minister in an April 28 election, is also advocating for an immediate renegotiation of the North American free-trade treaty, known as the United States-Mexico-Canada Agreement, to help bring an end to the uncertainty that is weighing on markets and eroding confidence among businesses and households.

Poilievre's call for narrower retaliation may be gaining momentum among Canadian officials. Prime Minister Mark Carney said this week the response to hefty tariffs from the U.S. needs to be "deliberate." Carney has also said there are limits on the scope of the country's retaliatory response, as the U.S. economy is about 10 times larger than that of Canada.

"Our immediate response must be targeted, reciprocal tariffs, targeted narrowly at those American goods we don't need or can make ourselves or buy elsewhere," Poilievre said in a speech in Toronto as he laid out the broad parameters of his approach to U.S.-Canada relations.

Some members of a cross-border advisory group set up by Canada's cabinet told The Globe and Mail newspaper that the government should avoid tariffs on goods like food, for instance.

A poll released Wednesday from the Angus Reid Institute suggested Canadian voters overwhelmingly believe Carney, the former central banker, is best suited to deal with the U.S., relative to Poilievre.

Canada--while under former Prime Minister Justin Trudeau--originally envisaged slapping 25% tariffs on a total of over $100 billion of U.S. imports. To date, Canada has imposed 25% tariffs on over $40 billion of American-made goods entering Canada. Carney took over as prime minister on March 14, after winning the Liberal Party of Canada leadership race, and shortly afterward called an April 28 election.

In his speech Poilievre said that, as prime minister, he would push Trump to accelerate the timetable for a USMCA renegotiation. The trade treaty, revised and implemented during Trump's first term, comes under formal U.S. review in 2026. "Why not get it done now? Why not end the uncertainty that is paralyzing both sides of the border and that is also costing us jobs?" he said.

Poilievre added that he would push for a deadline on a new deal, as well as for the suspension of all U.S.-Canada tariffs while negotiations are under way.

One-fifth of Canada's total output is tied to trade with the U.S.

Write to Paul Vieira at paul.vieira@wsj.com

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April 02, 2025 11:04 ET (15:04 GMT)

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