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Trump's tariff threat pushed the Canadian dollar to a five-year low against the U.S. dollar.
The Canadian dollar fell to its lowest point since May 2020 after former U.S. President Donald Trump threatened to impose a 25% tariff on Canadian imports.
The currency, known as the "loonie," had already been weakening against the U.S. dollar since September, partly due to a softer economy and interest rate cuts by the Bank of Canada.
Trump's tariff threat added to the currency's decline, making Canadian goods cheaper for U.S. buyers but raising costs for Canadian shoppers.
While investors do not expect Trump to follow through with the tariffs, the threat has created economic uncertainty.
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La amenaza arancelaria de Trump llevó al dólar canadiense a un mínimo de cinco años frente al dólar estadounidense.