Canadian Dollar likely to weaken to EUR by US import tarifs ->10

Canadian Dollar likely to weaken to EUR by US import tarifs ->10%

As of February 14, 2025, the United States has announced the following import tariffs on Canadian goods:

General Goods: A 25% tariff on all imports from Canada, effective March 4, 2025.
EN.WIKIPEDIA.ORG

Energy Products: A reduced 10% tariff specifically on Canadian energy exports, including oil, natural gas, and electricity.
EN.WIKIPEDIA.ORG

These tariffs were initially set to take effect on February 4, 2025, but were postponed for one month following negotiations between the U.S., Canada, and Mexico.
KLGATES.COM

In response, Canada has announced plans to impose 25% tariffs on $30 billion worth of U.S. goods, effective February 4, 2025, with potential expansion to additional goods in subsequent phases.
CANADA.CA

Expected Currency Effect on CAD/EUR:

The imposition of these tariffs is anticipated to weaken the Canadian dollar (CAD) due to potential economic strain from reduced exports and retaliatory measures. Consequently, the CAD/EUR exchange rate may decline, making the euro more expensive relative to the Canadian dollar. Forecasts suggest a bearish outlook for CAD/EUR, with potential decreases in value over the coming months.
GOV.CAPITAL

Recent Developments in US-Canada Trade Relations
reuters.com
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Yesterday
apnews.com
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