Loonies plunge just one consequence of Trump tariff threat on your wallet – National [Video]

The loonie is shaping up as an early casualty of U.S. president-elect Donald Trump’s latest trade threats against Canada, with knock-on impacts expected elsewhere in Canadian pocketbooks.

The value of the Canadian dollar dropped to a four-and-a-half-year low of 70.53 cents to the U.S. greenback late Monday in the wake of Trump issuing renewed threats via social media for 25 per cent tariffs on all imports from Canada and Mexico.

The loonie regained some value through the morning on Tuesday, rising back above 71-cent mark before noon.

Despite a rally late last week, the Canadian dollar has largely faltered against its American counterpart since the U.S. election earlier this month.

Much of that weakness has been tied to promises Trump made during the campaign to levy blanket tariffs against other nations and install other protectionist, America-first policies — moves that encourage investors to pile into the U.S. dollar, hurting other currencies.

The …