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"It's not just the lumber," he said, noting the U.S. administration had also been rumbling about potential tariffs on dairy products. "Any further escalation of this situation between the U.S. and Canada could well see the Canadian dollar weaken further." In 2016, Canada exported around C$112.6 million (around $83 million) worth of dairy products to the U.S., while it imported around C$557.3 million worth of dairy products from its Southern neighbor, according to Canadian government data. Goh noted that the news appeared to have also depressed the Mexican peso (Exchange: MXN=). Liquid Chalk|Canada The U.S. dollar was trading under 18.48 pesos before the news broke, but rose as high as 18.8410 pesos afterward. "It's really the sentiment around it," Goh said, noting that trade concerns had eased after the U.S. declined to label China a currency manipulator earlier this month. "It appeared the U.S. administration was backing down on earlier trade threats. Suddenly, it's announced [tariffs] on Canadian products. Concerns were raised once again on the potential for trade frictions," he said.
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