Bank of Canada holds steady, Hudson’s Bay to auction off artifacts and U.S. puts drug tariffs on the table: Must-read business and investing stories for the week of Apr. 20

Getting caught up on a week that got away? Here’s your weekly digest of the Globe’s most essential business and investing stories, with insights and analysis from the pros, stock tips, portfolio strategies and more.

U.S. puts drug tariffs on the table, threatening entire supply chainsOpen this photo in gallery:

The Trump administration opened an investigation into the entire pharmaceutical supply chain this week, a move that threatens to widen potential tariffs on prescription drugs. The U.S. Department of Commerce filed notice Monday that it would examine U.S. imports of pharmaceuticals and pharmaceutical ingredients. The notice’s inclusion of pharmaceutical ingredients means that the more than $7-billion worth of Canadian pharmaceutical exports to the U.S. could be hit by tariffs. Chris Hannay and Irene Galea report that generic companies are likely to be hit hard, and Canada is home to some major generic drugmakers, including Apotex and Pharmascience. Meanwhile, on the other hand, the White House and Florida’s state government are promoting the importation of Canadian medication as a way to lower drug costs.

Bank of Canada holds rate steady at 2.75% amid trade war uncertaintyOpen this photo in gallery:

The Bank of Canada decided to hit pause on its almost year-long monetary policy-easing campaign this week, leaving its benchmark interest rate unchanged at 2.75 per cent. This move follows seven consecutive cuts, as Mark Rendell reports, which have lowered mortgage rates and other Canadian borrowing costs considerably since last summer. Governor Tiff Macklem said the central bank decided to give itself time to assess the fallout from Trump’s erratic and destabilizing trade war and it needs to “proceed carefully.” The Bank of Canada also decided to forgo its usual forecast in its quarterly Monetary Policy Report, but outlined two possible scenarios. The downside scenario sees Canada entering a recession this year and inflation rising above 3 per cent. Mr. Macklem also added that he and his team are “prepared to act decisively if incoming information points clearly in one direction.” The next rate decision is scheduled for June 4.

Decoder: As Canadians ditch travel to the U.S., restaurants get a boost

As Canadians continue to cancel trips to the United States, one of the big beneficiaries appears to be restaurants here at home. Jason Kirby reports that the number of reservations at Canadian restaurants has grown more than 20 per cent so far in April compared to last year. It seems that Canadian travellers are saving money from the boycott and choosing to spend more at local restaurants – a bright spot in an otherwise gloomy consumer economy. Take a closer look at the numbers in this week’s Decoder series.

HBC employees could lose disability benefits, company to auction off artifactsOpen this photo in gallery:

As Hudson’s Bay Co. continues to liquidate its operation, many employees are raising the alarm about long-term disability payments. Susan Krashinsky Robertson reports that the payments, which are paid out of the company’s cash and are uninsured, are leaving people at risk of losing their benefits. According to a law firm representing some employees, Hudson’s Bay’s benefit policy provides long-term disability payments through an “administrative services only” [ASO] arrangement, which is not insured – meaning, if the retailer is unable to come up with a plan to keep some of its stores afloat, or if a new owner steps in, those benefits could disappear. The retailer also announced it intends to auction off historically significant artifacts it still owns, including its 1670 charter that played a pivotal role in the history of Canada.

Canadian companies embrace stockpiling ahead of tariff threats Open this photo in gallery:

Many Canadian business owners across the country have been purchasing heaps of excess inventory from both the United States and elsewhere around the globe in preparation for U.S. tariffs on Canada, among other global trade partners, and for Canada’s counterlevies. But with U.S. President Donald Trump regularly shifting course on tariffs – and Canada largely spared in the latest round of sweeping levies announced on April 2, which ranged from 10 to more than 100 per cent – the strategy involves significant risk. Mariya Postelnyak spoke to businesses that are in prepper mode, and how they’ve embraced stockpiling as a buffer against potential disruption in the trade of supplies and finished goods.

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