The unpredictable trade environment was central to this week’s decision by the Bank of Canada – to leave its key interest rate unchanged.

Senior deputy governor Carolyn Wilkins says the effects of tit-for-tat tariffs between Canada and the U-S on steel, aluminum and consumer goods – are already showing up in the economic data.

Speaking in Regina, Wilkins said the bank estimates the tariffs will trim about two-thirds of a percentage point from Canada’s gross domestic product by 2020.

But she says the estimates may need to be adjusted – as more information comes in  about the fate of NAFTA’s renegotiation – and how businesses are responding to the uncertainty.

Wilkins says that’s a key factor stopping companies from investing in their operations – to keep up with growing demand.