05:07 AM EDT, 04/03/2025 (MT Newswires) -- Canada and Mexico may have gotten off lightly in Trump's Wednesday tariff announcement but they will still suffer from sector-specific tariffs as well as the impact on the global economy, Scotiabank said in a note to clients Wednesday.

Both the Canadian dollar and Mexican peso behaved similarly, initially rallying after it appeared they would not be severely affected by the recent tariffs but then clawing back later, Scotiabank said, adding that the Canadian dollar is "highly volatile."

Analysts including Derek Holt said the effective tariff rates on both countries were "largely unchanged" as the two countries will not be hit with the baseline 10% tariff rate or reciprocal tariffs.

However, both countries still face sector-specific tariffs, including a 25% tariff on vehicles exported to the US and 25% tariffs on steel and aluminum products. The analysts also said both countries are trade- and commodity-dependent and would be affected by global conditions on commodities.

"For now, tariffs remain stacked, and the outlook unchanged," the analysts said. "We estimate Canada and Mexico's effective tariff rates for exports to the world are 3.3% and 4.2% respectively."

Meanwhile, Canadian Prime Minister Mark Carney promised to fight the US policy with countermeasures, saying the retaliation will be "with purpose and with force."

Ahead of the tariff announcement, Mexican President Claudia Sheinbaum said Mexico will announce a "comprehensive program, not a tit-for-tat on tariffs," Reuters reported.

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