The Canadian dollar recouped much of its earlier decline against the greenback on Tuesday as investors assessed the chances of U.S. President Donald Trump carrying out a threat to impose a hefty tax on imports from Canada next month.

Trump was quoted saying his team was thinking of tariffs around 25% which could be announced on Feb. 1 but offered no other specifics.

The Canadian dollar strengthened to a near 5-week high against its U.S. counterpart on Monday as the prospect of U.S. trade tariffs grew less imminent and a Bank of Canada survey showed that firms are beginning to anticipate improved activity.

President Donald Trump stopped short of imposing tariffs on Canada on day one but said they may come as soon as 1 February.

Prime Minister Justin Trudeau reached for a sales pitch instead of revealing any of his cards in his first public reply to U.S. President Donald Trump's suggestion that Canadian i

Canadian Prime Minister, Justin Trudeau, says his government was ready to respond to all scenarios if U.S. President, Donald Trump, imposes tariffs on Canada. Trudeau made this statement on Tuesday. When asked about an uncertain timeline on possible tariffs,