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Loonie Weakens After US Announces Trade Tariffs

Published April 25, 2017
  • The loonie is at one year lows against the US dollar this morning after US Commerce Secretary Wilbur Ross announced that the Trump Administration will impose tariffs of up to 20% on Canadian softwood lumber
  • US President Donald Trump also mentioned in the Wall Street Journal that he plans to retroactively impose an import tax on Canadian softwood timber as well; forestry exports represent 7% of Canada’s total exports
  • President Trump’s recent attacks towards Canadian trade set a heavy tone for future NAFTA negotiations and removes that notion that Canada is invulnerable from Trump’s US protectionist rhetoric
  • Further speculation around Donald Trump’s tax cut announcement on Wednesday is moving the market; an administration official said on Monday that President Trump plans to slash the corporate income tax rate from 35% to 15%
  • Oil prices rose for the first time in seven sessions this morning, later falling again below opening levels; investors look to industry data from the American Petroleum Institute later today at 4:30 PM EST
  • Euro-skeptic candidate Marine Le Pen has temporarily stepped down from her position as leader of the National Front Party in order to focus on her presidential candidacy in the French election
  • The euro continues to strengthen as the market looks towards this week’s European Central Bank meeting