Canadian Dollar Tumbles As Trump Ups Tariff Ante With 35-Percent Threat
Update: Bloomberg is reporting that a US official has clarified that the new tariff threshold is NOT intended to apply to USMCA-compliant goods, suggesting that the impact on the Canadian economy could be far smaller than might otherwise have been the case. Our admittedly-unscientific estimates suggest that roughly 80 percent of Canadian exports to the US could ultimately meet the qualification criteria needed to escape the new levies. The loonie’s losses are beginning to moderate, although the exchange rate remains more than 40 basis points below this afternoon’s closing level. The Canadian dollar is tumbling once again after President Donald...