The Canadian dollar extended decline against its major counterparts in the New York session on Tuesday, after U.S. President Donald Trump announced additional tariffs on steel and aluminum imports from Canada.

Trump announced on Truth Social that he will increase tariffs on steel and aluminum products to 50% from 25% starting tomorrow.

Trump's announcement was in response to Ontario's implementation of a 25% surcharge on electricity exported to U.S.

Trump also threatened to impose further tariffs on car imports in April.

The loonie fell to a 1-week low of 1.4521 against the greenback, near 5-year low of 1.5858 against the euro and near a 2-year low of 101.45 against the yen.

The loonie retreated to 0.9106 against the aussie, from an early 4-day high of 0.9040.

The currency may challenge support around 1.465 against the greenback, 1.60 against the euro, 97.00 against the yen and 0.92 against the aussie.

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