Canadian Dollar Weakens on Tariffs and Soft CPI – BBH

Brown Brothers Harriman (BBH) analyst Elias Haddad highlighted that the Canadian Dollar (CAD) is underperforming compared to other high-beta currencies. The move follows the Trump administration's announcement of a 50% tariff on approximately $20 billion worth of Canadian imports, with energy and some key sectors excluded.

The pressure on the Loonie is compounded by soft Canadian CPI data, which adds to the bearish outlook. The combined effect of trade tensions and weak inflation is weighing on the currency, making it one of the worst performers among commodity-linked currencies.