The Canadian dollar hit a nearly 22-year low against the US dollar after US President Donald Trump imposed new tariffs on Canada, Mexico, and China. The Mexican peso and Chinese yuan also fell in response.
Canada’s exports are worth around $155 billion, with 25% tariffs applied to these goods. Mexico and China have vowed retaliatory measures, which may escalate the trade war.
Analysts warn that any further tit-for-tat responses could lead to a decline in the value of non-USD currencies, such as the Canadian dollar. The US President’s move aims to address issues like immigration and fentanyl smuggling.
Source: https://www.investing.com/news/forex-news/canadian-dlr-mexican-peso-and-chinese-yuan-slump-after-trump-imposes-tariffs-3844163