Loonie Tumbles as US Imposes Tariffs Amid Trade Deal Uncertainty
The Canadian dollar fell against the US dollar in late-morning trading as the US imposed 50% tariffs on approximately $28 billion worth of Canadian goods, following broken trade talks between Canada and the US. The breakdown in negotiations led to President Donald Trump's threat of even higher tariffs on vehicles, auto parts, and steel.
The Canadian dollar traded for 72.27 cents US compared to 72.67 cents US on Friday. Scotiabank's head of capital markets economics, Derek Holt, said the CAD was 'only about half-a-penny weaker since Friday's close' due to lower oil prices and a slightly firmer overall US dollar.
iA Financial Group's chief economist, Sébastien Mc Mahon, stated that the loonie is one of the most shorted major currencies, leaving little room for further decline. The S&P/TSX composite index was down 15.03 points at 36,605.20.