06:18 AM EDT, 10/24/2025 (MT Newswires) -- The persistent uncertainty surrounding trade policy is weighing on U.S. business planning, and hopes for a deal between Washington and Ottawa suffered a setback after President Donald Trump announced he was halting trade talks with Canada. The move followed anti-tariff advertisements aired in the U.S. that were sponsored by the province of Ontario, MUFG said.

The US continues to hit Canadian imports not covered under the USMCA deal with a 35% tariff while certain sector-specific tariffs, like on steel and aluminium, are hit with a 50% tariff.

Despite the 8% gain in crude oil prices in the last two days, the Canadian dollar (CAD or loonie) is underperforming and is close to unchanged versus the US dollar (USD) this week, wrote the bank in a note to clients.

CAD is being held back by the trade tariff uncertainty and the more aggressive monetary easing by the Bank of Canada, stated MUFG.

The BoC looks set to cut the key policy rate again next Wednesday, although a strong jobs report and higher than expected inflation leaves the decision a close call and if a cut is delivered,, it may well be accompanied with a signal of a pause, added the bank.