President Trump’s decision to impose a 35% tariff on Canada has led to a sharp decline in the Canadian dollar, stirring uncertainty in North American trade relations just weeks before the new rates take effect on August 1.

President Donald Trump threatened to double tariffs on Canadian steel and aluminum exports but reversed course after Ontario Premier Doug Ford agreed to suspend a planned surcharge on electricity exports to the U.S. The incident unsettled financial markets already jittery over trade policies.