Canada to consider export taxes on oil and uranium if Trump imposes tariffs – report

Canada lately has been floating a hard line against potential tariffs under Trump. A report from Bloomberg says Canada will consider export tariffs on oil, uranium and potash if Trump imposes the 25% across-the-board tariff he’s tweeted about.

USD/CAD has risen about 15 pips and touched a fresh four-year high on the headlines.

To be honest, I think this is all political bluster. Trump isn’t going to put 25% tariffs on Canada over border security and Canada isn’t going to retaliate. It’s all grandstanding and the report says this would be a “last resort”.

Shares of Canadian uranium giant Cameco initially dipped on this but have quickly recovered. Canadian oil company stocks barely moved. That’s a strong sign this isn’t serious talk.

This article was written by Adam Button at www.forexlive.com.