Loonie Falls Against US Dollar Amid Tariffs and Threats

The Canadian dollar fell against the US dollar in late-morning trading as the US imposed tariffs on $28 billion worth of Canadian goods, following failed trade talks between Canada and the US.

President Donald Trump threatened even more tariff hikes on vehicles, auto parts, and steel. The loonie traded for 72.27 cents US compared to 72.67 cents US on Friday.

Derek Holt, head of capital markets economics at Scotiabank, said the weakness in the Canadian dollar was partly due to lower oil prices and a 'slightly firmer overall U.S. dollar.'

Sébastien Mc Mahon, chief economist at iA Financial Group, noted that the loonie is one of the most shorted major currencies, leaving little room for further decline.