The threat launched Monday by Donald Trump to impose additional customs duties of 25% on Canadian products upon his arrival at the White House in January caused the Canadian dollar to fall to its lowest level in four years.
• Also read: Trump promises a 25% increase in Canadian customs taxes
The loonie was worth 71.06 US cents at 2 p.m. Tuesday, after spending part of the morning below 71 US cents. Its value has not been this low since May 2020.
The president-elect thus deals another blow to the Canadian currency, which has continued to lose value since reaching 74.19 US cents at the end of August.
“Donald Trump is not yet in office and he is already starting to influence and disrupt the financial markets,” Desjardins wrote in his morning economic note on Tuesday.
The financial institution expects “a certain level of volatility” in the markets on Tuesday, while the impacts of the threat of new customs duties continue to be analyzed.
Donald Trump announced on his Truth Social website Monday evening that as soon as he takes office as president of the United States next January, he will impose customs duties of 25% on all products coming from Canada and the United States. Mexico who enter the country he is about to govern for a second time.
