The Bank of Canada on Wednesday trimmed its key policy rate by 25 basis points to 3%, cut growth forecasts and said it was concerned that U.S. tariffs could stoke persistently high inflation. U.S. President Donald Trump is promising to impose a 25% tariff on all imports from Canada on Saturday.

The Bank of Canada is likely to cut interest rates by a quarter percentage point on Wednesday as officials lay out their analysis of how US tariffs might derail a soft landing for the Canadian economy.

Economists are divided on the Canadian rate outlook should President Trump follow through on his 25% tariff pledge.

Canada's federal government has assured Alberta that it will not bear a disproportionate burden of any retaliatory tariffs imposed in response to potential US import levies.

Any Canadian response to U.S. tariffs will be regionally fair and equitable and not single out Alberta, Canada's main oil-producing province, Canada's Energy and Natural Resources Minister Jonathan Wilkinson said on Wednesday.

If the U.S. follows through on President Donald Trump's threat to impose massive tariffs on Canada as early as Saturday, Ottawa could hit back with retaliatory tariffs within hours or days, according to international trade lawyers.