Canadian Dollar Slides 0.45% as U.S. Hits $20 Billion of Canadian Imports With 50% Tariffs
Updated
Updated · CNBC · Aug 24
Canadian Dollar Slides 0.45% as U.S. Hits $20 Billion of Canadian Imports With 50% Tariffs
3 articles · Updated · CNBC · Aug 24
Summary
The loonie fell 0.45% against the U.S. dollar early Monday, and also weakened versus the euro, pound and yen, after U.S.-Canada trade talks collapsed over the weekend.
Washington imposed 50% tariffs on about $20 billion of Canadian goods on Saturday—covering dairy, wine, wood products and ceramics—while removing the previous USMCA-compliant exemption.
Mark Carney said Canada will retaliate "dollar for dollar" from Sept. 8, targeting steel, dairy, farm equipment, paper and electronics, after accusing the U.S. of demanding too much and attacking Canada.
Economists said Canada faces the bigger hit because of its smaller, more open economy; targeted goods equal about 0.6% of GDP, but a wider export slump could push growth toward zero.
Capital Economics warned that if 50% tariffs spread to 20% of Canada’s U.S. goods exports from 5% now, the shock could shave about 2% off GDP and tip Canada into recession.