Published: 2025-01-31T17:34:57.000Z
USD/CAD flows: Are tariffs going to be postponed again?
Senior Economist , North America
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The USD has seen a bounce, most notably versus the CAD, on a Reuters report that Trump will issue tariffs against Canada and Mexico on March 1, if so a second postponement from what was originally going to be day one of his presidency and then re-scheduled to February 1.
While it is difficult to know what to make of the report, unless Trump goes ahead on February 1, markets are likely to be highly skeptical that anything will happen on March 1. Trump seems to have little idea what he is doing and may be facing resistance to tariffs from wiser voices in his economic team. Treasury Secretary nominee Scott Bessant earlier this week suggested universal tariffs of 2.5% , a lot less than the 25% Trump has been suggesting for Canada and Mexico.