Here are 4 ways your finances could change under Trump’s 2nd presidency

Donald Trump's return to the White House on Monday coincided with a lift for the loonie. Here's why, and what other impacts Canadian consumers can expect.

Canadians are watching their finances for any impacts as President Donald Trump takes back the reins of government in the United States.

But one of the biggest economic threats of Trump’s second term — a pledge to impose blanket tariffs on  goods entering the U.S. from Canada and other trade partners — appears to have been put off.

Those tariffs will not be implemented on Trump’s first day in office, as the president once floated, as first reported by the Wall Street Journal. Instead, he will reportedly issue a memo calling for a broad review of U.S. trade with a focus on China, Canada and Mexico that could see tariffs put in place at a later date.

Even with a brief reprieve from threatened tariffs, the ripple effects of Trump’s second presidency are already being felt north of the border.

Here’s what Canadian should be watching to plan their finances as Trump returns to the White House.

The Canadian dollar shot higher compared to its American counterpart on Monday in response to the news that Trump would not immediately impose tariffs on Canada.

Despite the gain of about one per cent in early trading on inauguration day, the loonie remains just below 70 cents US. The Canadian dollar has been largely depressed since Trump’s re-election in November, and remains down roughly six per cent from the start of last year.

Protectionist policies like Trump’s America-first agenda encourage investors to flood their money into the U.S. and out of other jurisdictions, hampering other currencies in relation to the American greenback.