US Tariff Shock Weighs on Canadian Dollar – BNY

BNY's Geoff Yu highlights that the new 50% U.S. tariffs on selected Canadian goods are a direct and severe trade shock for the Canadian dollar. Washington has justified the move by citing unfair treatment of US exports, while explicitly ruling out any protections under the United States-Mexico-Canada Agreement (USMCA).

The tariffs are expected to pressure CAD further, as trade relations between the two countries deteriorate and uncertainty weighs on the currency.