Loonie Tumbles Below 72-Cent Mark Amid Tariff Announcements

The Canadian dollar took a hit on Wednesday morning as it slipped below its Tuesday close, threatening to drop below the 72-cent mark against the US dollar. The loonie was trading at around US$0.7202 or C$1.3885 by 8:38 am CDT.

This move comes as Canada announced tariffs on US$27.6 billion worth of goods from the United States, starting September 8th. Additionally, the country will provide financial support to affected workers totaling around US$7.5 billion.

The decline in the Canadian dollar was also mirrored by a drop in crude oil prices, with Brent crude falling to US$86.72 per barrel and West Texas Intermediate shedding US$1.64 at US$80.72 per barrel.