08:21 AM EST, 02/26/2025 (MT Newswires) -- The United States tariff story is going to start heating up again next week as markets approach next Tuesday's deadline for tariffs against Canada and Mexico.

This was the tariff threat in response to insecure borders and not the tariff threat related to steel and aluminum imports -- likely coming in on March 12 -- nor the threat from reciprocal tariffs, which likely coming in sometime in April, recalled the bank in a note.

It now looks like USD/CAD is the foreign exchange market's lightning rod for the tariff story, stated ING. This is evident in the foreign exchange options market, where the one-month skew for US dollar (USD) calls and Canadian dollar (CAD or loonie) put options remains high at 1.7% volumes in favor of CAD puts -- not far off the last January peak near 2.00% vols.

Investors are clearly concerned that tariffs aren't merely negotiated away in Canada, according to the bank.