If Donald Trump is worried about trade deficits with Canada he should take a look at today’s chart from National Bank. Sixty per cent of the 35 major American industries in bilateral trade with Canada have a trade surplus, compared with 25 per cent of the industries that have a surplus when trading with the rest of the world.

The dollar rose after new U.S. tariffs were imposed on Canada, China and Mexico over the weekend, a move which will boost inflation and potentially prevent the Fed from cutting rates further, however the tarrifs could also weigh on U.