Under the United States-Mexico-Canada free trade pact (USMCA), which the Trump administration has confirmed remains in place, Canada and Mexico can export chocolate to the U.S. tariff-free no matter where they sourced their inputs of cocoa - a tropical crop that does not grow in the United States.

Canada’s central bank held its key lending rate at 2.75 percent on Wednesday, as the major US trading partner confronts economic uncertainty two days before President Donald Trump’s latest tariff deadline.

The Bank of Canada will most likely keep rates on hold at 2.75% on Wednesday for the third time, reflecting a softer-than-expected impact of the trade war with the U.S. on the Canadian economy, which has kept the need for monetary stimulus at bay.

The Bank of Canada left interest rates unchanged, citing uncertainty posed by US tariffs, but kept the door open to more cuts if the economy weakens and inflation pressures stay in check.