07:48 AM EST, 01/24/2025 (MT Newswires) -- The Canadian dollar (CAD or loonie) has struggled in the wake of November's United States presidential election, noted Scotiabank.

President Trump's threat of massive and universal tariffs on Canadian exports to the U.S. has weakened sentiment materially, given the extensive economic harm that tariffs

would do, said the bank.

Scotiabank assumes a more measured tariff regime will eventually emerge but downside risks to the economic outlook will ensure that Canadian interest rates remain

very low relative to the United States for some time, keeping the CAD relatively weak.

A return to sub-1.40 levels appears unlikely for some time, stated the bank. A potential change in political direction in Canada may not improve trade relations significantly -- as the United Kingdom's Conservative government discovered in the first Trump term following 2016's Brexit.