# Canadian dollar tanks, gold soars as Donald Trump vows tariffs

> Trump reaffirmed plans to impose 25% tariffs on imports from Canada and Mexico on February 1 and cited immigration, fentanyl and trade deficits as reasons. The Canadian dollar fell as much as 1.2% to 68.5 U.S. cents, and gold briefly topped US$2,800. Analysts warned tariffs could drive a recession and prompt deeper Bank of Canada rate cuts.

- Date: 2025-01-31 · published 2025-01-31T12:00:00.000Z
- Category: trade · region Canada/Mexico · magnitude medium
- Page: https://feedsoft.ai/events/26755-canadian-dollar-tanks-gold-soars-as-donald-trump-vows-tariffs
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md), [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Broad tariffs on Canada and Mexico threaten trade flows of grains, oilseeds and meals, and could pressure feed demand and export prices. A weaker loonie would further shift Canadian canola and oat supplies toward global markets.

## Read by commodity

- DXY: bullish ▲
- USDCAD: bullish ▲
- USDMXN: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2024-11-26 | [Dollar jumps, stocks retreat after Trump vows tariffs](https://feedsoft.ai/events/27637-dollar-jumps-stocks-retreat-after-trump-vows-tariffs.md) | -0.0% | +1.1% |
| DXY | 2024-11-26 | [Canadian dollar pares decline after Trump tariff pledge shock](https://feedsoft.ai/events/27651-canadian-dollar-pares-decline-after-trump-tariff-pledge-shock.md) | -0.0% | +1.1% |
| DXY | 2024-11-26 | [Morning Bid: Trump tariff threat jolts Canadian dollar, peso, yuan \| Reuters](https://feedsoft.ai/events/27607-morning-bid-trump-tariff-threat-jolts-canadian-dollar-peso-yuan-reuters.md) | -0.0% | +1.1% |
| DXY | 2024-11-26 | [Trump tariff vow hits Mexican and Canadian currencies, yen firm \| Reuters](https://feedsoft.ai/events/27632-trump-tariff-vow-hits-mexican-and-canadian-currencies-yen-firm-reuters.md) | -0.0% | +1.1% |
| DXY | 2025-02-28 | [Bali trippers can thank Trump as rupiah hits 5-year low on tariffs, Prabowo plans - The Business Times](https://feedsoft.ai/events/26358-bali-trippers-can-thank-trump-as-rupiah-hits-5-year-low-on-tariffs-prabowo.md) | -1.5% | -1.3% |

## Sources

- financialpost.com: https://financialpost.com/news/canadian-dollar-tanks-gold-soars-donald-trump-tariffs/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.