Loonie down in late-morning trading as U.S. imposes tariffs and Trump threatens more

The Canadian dollar, also known as the loonie, experienced a decline against the US dollar during late-morning trading. This drop occurred due to the United States imposing 50 percent tariffs on approximately $28 billion worth of Canadian goods. President Donald Trump also threatened to impose further tariffs. The incident follows trade talks between Canada and the US breaking down on Friday night, leading to additional threats of tariff hikes on vehicles, auto parts, and steel by Trump.

Following the decision, the loonie traded at 72.27 cents US, a decrease from 72.67 cents US on the previous day. The S&P/TSX composite index rose by 39.91 points to 36,660.14, while the Dow Jones industrial average increased by 79.48 points to 53,356.49. The S&P 500 index fell by 31.84 points to 7,642.53, and the Nasdaq composite dropped by 191.35 points to 25,989.11.

In the commodities market, the October crude oil contract decreased by US$2.16 to $84.90 per barrel, and the December gold contract rose by US$51.40 to $4,732.00 an ounce.