08:05 AM EST, 03/05/2025 (MT Newswires) -- United States President Donald Trump defended his trade tariffs against Canada, Mexico and China in his Congress speech late Tuesday, saying it would raise "trillions and trillions" in revenue, said Bank of Montreal (BMO).

Trump acknowledged that any resulting economic pain could be just a "little disturbance" that the country can overcome, noted the bank. The president also highlighted the recent bond market rally. Ten-year U.S. Treasury yields are little changed early Wednesday at 4.22%, while the US dollar slipped.

Canada will release Q4 labor productivity at 8:30 a.m. ET Wednesday, pointed out BMO.

After some upward revisions to labor productivity last quarter, Canada could be in for some more good news in Q4. The bank estimates productivity rose 0.8%, as gross domestic product growth accelerated while hours worked were constrained by labor stoppages.

This would be just the third quarter of rising productivity since the pandemic distortions in 2020. Still, the big picture remains one of weakness, especially in contrast with the U.S, added BMO. While that provides an opportunity for Canadian businesses to make productivity-enhancing investments, it can also act as an obstacle to attracting business investment from outside Canada --which is already struggling in the uncertain trade environment.

Toronto home sales figures were released early Wednesday, with activity remaining lacklustre in February amid affordability challenges and weak household confidence, according to the bank.