The Bank of Canada’s Financial Stability Report 2025, released yesterday, May 8, 2025, warns that a prolonged trade war could trigger severe financial risks, including asset fire sales, market dysfunction in core funding markets, and the need for emergency liquidity measures. These disruptions could hit Canadian households hard, especially with 60% of mortgage holders facing renewals in 2025-26, many at higher interest rates. Banks may tighten lending, and some households could struggle to make debt payments, potentially leading to rising defaults under severe stress.
While other countries move quickly to secure U.S. trade deals, Canada remains complacent.
As Eric Trump has recently posted on X, “I wouldn’t want to be the last country that tries to negotiate a trade deal with @realDonaldTrump. The first to negotiate will win – the last will absolutely lose. I have seen this movie my entire life…”
Read more:
[Financial Stability Report 2025](https://www.bankofcanada.ca/2025/05/financial-stability-report-2025/)
[Opening Statement](https://www.bankofcanada.ca/2025/05/opening-statement-20250508/)
E: LDALINDA@DALINDA.NET • TEL: 416-725-7170
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Palace Place, 1 Palace Pier Court, and Palace Pier, 2045 Lake Shore Boulevard West, in Humber Bay Shores.
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Luke Dalinda, Realtor. Royal LePage Real Estate Services Ltd., Brokerage.
View all current and past Palace Place listings for sale here.