Donald Trump’s inauguration speech mentioned a potential 25% tariff on imports from Canada and Mexico, sparking USD/CAD volatility. The pair surged to 1.4518 before settling near 1.4445 as markets reacted to fears over Canada’s export-driven economy. Canadian PM Justin Trudeau criticized the proposed tariffs, highlighting the potential harm to both Canadian industries and U.S. consumers. He emphasized the importance of defending Canadian exporters and maintaining stable trade relations, warning that retaliatory measures could follow if the tariffs are enacted.