There was a defensive rally in the dollar, and it was the commodity currencies -- the Australian and New Zealand dollars -- that were hit hard, as well as the Mexican peso and Canadian dollar. The Swiss franc and Japanese yen were the best performers.

If Donald Trump is worried about trade deficits with Canada he should take a look at today’s chart from National Bank. Sixty per cent of the 35 major American industries in bilateral trade with Canada have a trade surplus, compared with 25 per cent of the industries that have a surplus when trading with the rest of the world.

The Canadian dollar already fell to a five-year low compared with the U.S. dollar early Friday. Depending on how the Trump Administration chooses to move ahead with its tariff threats, the reaction early next week could be potentially huge.

Trump’s move to impose new tariffs has bewildered the United States’ closest allies and trading partners, who have vowed to respond with levies of their own.