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.

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

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.

Canada’s dollar is heading for a wild week as US President-elect Donald Trump assumes office and traders prepare for the US to impose tariffs on the country’s exports.

The Canadian dollar weakened against its U.S. counterpart on Friday, with the currency approaching a multi-year low it hit in December as the looming U.S. presidential inauguration focused attention on expected trade tariffs.