06:42 AM EST, 02/10/2025 (MT Newswires) -- The US dollar (USD) has been supported both by the release Friday of the nonfarm payrolls report for January and President Donald Trump's decision to announce further tariff hikes at the start of this week on top of the 10% hike put in place against China last week, said MUFG.

President Trump told reporters on Sunday that he plans to impose 25% tariffs on all imports of steel and aluminium into the U.S. including Canada and Mexico although didn't specify when they would become effective, wrote the bank in a note to clients.

Data from the U.S. Census Bureau revealed that the U.S. imported the most steel and aluminium from Canada last year totalling $11.2 billion and $D9.5 billion respectively. The next biggest countries from which the U.S. imported steel were Mexico ($6.5 billion), Brazil ($5.2 billion) and China ($5.2 billion).

The tariff hikes if implemented as currently planned would be a setback for Canada and Mexico after last week's relief when President Trump decided to delay the implementation of 25% tariff hikes on all imports, stated MUFG.

The Canadian dollar (CAD or loonie) has weakened modestly overnight Sunday in response lifting USD/CAD to an intra-day high of 1.4380 although it remains well below last week's high of 1.4793 set prior to the 25% tariff hike delay on all imports, pointed out the bank. Tariff hikes on steel and aluminium were also one of the first measures President Trump implemented during his first presidency in 2018 when put in place a 25% tariff on steel and a 10% tariff on aluminium on the grounds of national security.