Canada lately has been floating a hard line against potential tariffs under Trump. A report from Bloomberg says Canada will consider export tariffs on oil, uranium and potash if Trump imposes the 25% across-the-board tariff he’s tweeted about.
USD/CAD has risen about 15 pips and touched a fresh four-year high on the headlines.
USD/CAD 10 mins
To be honest, I think this is all political bluster. Trump isn’t going to put 25% tariffs on Canada over border security and Canada isn’t going to retaliate. It’s all grandstanding.