Canada’s central bank lowered its key interest rate by half a percentage point while highlighting the risk of U.S.

President-elect Donald Trump’s pledge to slap a 25% tariff on imports from Canada in his first days in office has clouded the outlook for the Canadian economy, Bank of Canada Gov. Tiff Macklem said Wednesday.

The Bank of Canada slashed its key policy rate by 50 basis points to 3.25% on Wednesday to help address slower growth, though Governor Tiff Macklem indicated that further cuts would be more gradual and said he does not expect a recession.