The Canadian dollar weakened to an eight-month low against its U.S. counterpart on Monday after U.S. President Donald Trump used proposed tariffs on steel and aluminum as a bargaining chip in talks to revamp NAFTA.
Trump is expected to finalize the tariffs later in the week. He appeared to tie possible exemptions for Canada and Mexico to a “new” North American Free Trade Agreement as well as other steps.
“It once again puts the risk of NAFTA and disruptions to trade flows... right back at the forefront of people’s considerations,” said Scott Lampard, head of global markets at HSBC Bank Canada. Click here to read more.