Canada’s economy is stuck in a state of “suspended animation,” with major new investments largely on hold, but may start to recover in the coming months, according to the head of one of the country’s largest banks.

World leaders at the Group of Seven summit in Canada yesterday pushed US President Donald Trump to back away from his punishing trade war,

“I don’t think it’s a crisis,” Canadian Imperial Bank of Commerce chief executive Victor Dodig said at an automotive industry event in greater Toronto. But the economy needs the salve of lower interest rates, pro-growth policies and more certainty on trade policy, he said.

Trump told reporters that he and Carney still have differences over policy but that trade deal was 'achievable' in the coming weeks.

Five Canadian premiers, including Ontario's Doug Ford, are in Boston on Monday to forge alliances with some U.S. governors against Donald Trump's tariffs. But with only one Republican governor attending,

President Trump kicked off three days of meetings in Canada, saying 'our primary focus will be trade,' but with minimal evidence of progress to offer on long-promised deals.

The Group of 7 nations and allies from around the world are heading to a summit in Alberta in Western Canada on Sunday.

Most G7 countries have already been subjected to a 10 percent base tariff by Trump, with European countries and Japan also facing additional levies on cars, steel, and aluminum.