News Analysis
While the Canadian loonie has enjoyed a two-month rise, additional U.S. tariffs have halted its momentum and could cause it to slide further.
The United States imposed new 50 percent tariffs on Canada on Aug. 22 after trade talks collapsed the day before. The country then on Aug. 24 threatened more steep tariffs to come, on Canadian automobiles and steel starting Jan. 1, 2027, after Ottawa announced counter-tariffs set to take effect Sept. 8.
While the new U.S. tariffs are likely to put increased downward pressure on the Canadian dollar and a potential increase in U.S. interest rates likely to add to it, economists say the loonie’s value is unlikely to fall dramatically….