The exemption on US metal tariffs has ended for Canada, Mexico, and the European Union. An all-out trade war is no longer in question. Canada throws some punches of its own back with tariffs of its own on US exports, everything from orange juice to recreational watercraft to whiskey. Metal tariffs are being added as the Trump administration has the authority to impose duties on the bases of national security. Trudeau and Trump will meet at the G7 leader's meetings in Charlevoix, Quebec next week. The tariffs from both sides are hindering the NAFTA negotiations, as the uncertainty of a fair deal that all parties involved are seeking.
Market participants reacted strongly against the loonie after news the exemption, couple this with a weak GDP reading and the Canadian dollar fell against its counterparts erasing all its gains it made after the BOCs rate statement time change from being cautious on rate hikes to be gradual going forward. The Canadian starts the first day of a new month at 1.2977 (0.7705).