Loonie Sinks as Canada Imposes Tariffs on US Goods

The Canadian dollar has declined in value on Wednesday morning, potentially breaking below the $1.72 USD mark.

At 8:38 a.m. CDT, the loonie traded at US$0.7202 or US$1=C$1.3885, down from its previous close of US$0.7226 or US$1=C$1.3839 on Tuesday.

This decline in the Canadian dollar comes as Canada announced plans to impose tariffs on $27.6 billion worth of U.S. goods starting September 8th. The government will also provide $7.5 billion in financial support for workers affected by these new tariffs.

Meanwhile, crude oil prices have dropped amid reports that Iran and Oman are proposing a joint plan to establish a temporary shipping lane in the Strait of Hormuz and clear mines from the area.