Canadian dollar slides as US-Canada trade tensions escalate
The Canadian dollar falls to around 1.37 per US dollar after US-Canada trade negotiations collapse and President Donald Trump’s 50% tariffs on Canadian imports take effect.
The Canadian dollar fell to around 1.37 per US dollar, retreating from a three-month high as US-Canada trade war intensified following the collapse of negotiations.
President Donald Trump’s 50% tariffs on a range of Canadian imports took effect on Saturday after last-minute talks between the two nations broke down.
The new tariffs are expected to affect around 5% of Canada’s annual exports to the US, worth approximately $20 billion, including products such as hockey sticks, agricultural products, wine, cement, clothing, furniture, cameras, and other consumer goods.
In response, Canadian Prime Minister Mark Carney said Canada would impose retaliatory tariffs starting September 8.
Geopolitical tensions also kept investors cautious, with the US expected to announce new sanctions on Iran later in the day.
Meanwhile, markets are looking ahead to Federal Reserve Chairman Kevin Warsh’s remarks in Jackson Hole later this week for further clues about the outlook for US interest rates.