Barclays: If Trump imposes a 25% tariff on Canada, the Canadian dollar will fall to a new low

On January 10th, Barclays forex strategist Skylar Montgomery Koning believes that if Donald Trump fulfills his threat to impose a 25% tariff on all Canadian imports after taking office as US president, the Canadian dollar may plummet to a record low. Our import substitution model shows that Trump’s threat to impose a 25% tariff on Canadian imports will cause the Canadian dollar to depreciate by 19% to 1.63 against the US dollar, “she wrote in a report on Thursday.” I believe this threat needs to be taken seriously.

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