CAD declined against other major currencies in the European session on Tuesday, as investors digested President-elect Donald Trump's statements that he would impose significant tariffs on goods imported from Canada and Mexico during his first day in office.
In a late Monday post on Truth Social, Trump wrote that on January 20th, he will sign the paperwork necessary to impose a 25% tariff on imports from both Canada and Mexico and an additional 10% tariff on China-made imports until the flow of migrants and fentanyl stop flowing into the country.
“As everyone is aware, thousands of people are pouring through Mexico and Canada, bringing Crime and Drugs at levels never seen before,” Trump claimed. “This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!”
MXN also came under pressure following Trump's threat of tariffs.