Canada Slaps US with C$27.6 Billion Tariffs as USD/CAD Falls

The Canadian Dollar found support from a weaker US Dollar on Tuesday as USD/CAD slipped to around 1.3834 after easing from an intraday high of 1.3867.

Canada announced it will impose retaliatory tariffs on C$27.6 billion of US goods, with duties ranging from 15% to 50%, affecting roughly 700 products starting September 8.

The move follows a US decision to apply 50% tariffs on a similar value of Canadian imports after talks broke down.

Technically, USD/CAD remains capped below the 200-day Simple Moving Average at 1.3843, with further resistance at key levels including the 50.0% Fibonacci retracement at 1.3887 and the 100-day SMA at 1.3914.