FX.co ★ Loonie Appreciates to 4-Month Highs

The Canadian dollar surged to $1.41, marking its highest point in approximately four months. This gain is attributed to the broad weakening of the US dollar as traders responded to President Trump's latest tariff announcements. The United States plans to implement a 10% tariff on all imports, with significantly higher rates targeting specific countries. Notably, no additional tariffs have been introduced for Canada and Mexico. The previously established 25% tariffs will persist, excluding goods compliant with the USMCA, which accounts for the majority of trade between these nations. Canadian energy and potash exports will face a reduced tariff rate of 10%, while the existing 25% tariff on Canadian steel and aluminum will remain unchanged. President Trump did not specify whether Canada would be exempt from the proposed 25% tariff on foreign-made automobiles. In response, Canadian Prime Minister Mark Carney has pledged to counter the US tariffs "with purpose and with force." The Bank of Canada is scheduled to reveal its monetary policy decision on April 16.