The Canadian dollar fell against a slew of major currencies after the U.S. imposed 50% tariffs on around $20 billion worth of imports. "As a smaller, more open economy, Canada has more to lose from this," strategists at ING said.
Canadian Prime Minister Mark Carney stated that Washington had "asked too much" and he was not prepared to "compromise Canada's sovereignty or undermine our key industries."
The tariffs will take effect on September 8, and Carney promised to retaliate "dollar for dollar" targeting sectors such as steel, dairy, agricultural equipment, paper, and electronics.
The tariffs only apply to 5% of Canada's goods exports to the U.S., meaning "it isn't a hammer blow, but for many individual companies it will be devastating," ING's chief international economist said.
