07:59 AM EDT, 08/01/2025 (MT Newswires) -- Other countries took late Thursday's announcements on United States tariffs harder than Canada, said Scotiabank.

The bank had already factored in a 35% tariff on non-CUSMA/USMCA-compliant goods into its calculations for the effective tariff rate (ETR) on Canadian exports on the assumption that a deal wouldn't yet be reached.

Because of the exemption that the administration verified late Thursday and because Scotiabank has argued that most exports are already CUSMA-compliant, Canada's ETR remains at 4.6% on total goods and services exports to the world and 6.3% on total goods and services exports to the U.S.

That's marginally higher than before Friday's deadline but not relative to what the bank and markets had largely assumed before late Thursday. This includes all tariffs announced to date. Estimates vary, but the assumed CUSMA-compliant share of Canadian trade is around 90% with some "cautions." Mexico's compliance factor is lower.

In addition, most of the tariff hit to Canada has nothing to do with the 35% rate on non-compliant trade. It's driven by sector-specific tariffs like on metals, added Scotiabank. That's a fiscal policy matter for Canada to address in providing targeted assistance and support, not a broad monetary policy matter.

This is all unwelcome to Canada, but not "debilitating," according to the bank. This is why the Canadian dollar (CAD or loonie) isn't reacting in any particularly harsh way so far and relative to other currency crosses.