Canada-US Trade War Escalates as Tariffs Take Effect

The Canadian dollar has dropped to around 1.37 per US dollar, retreating from its three-month high due to escalating trade tensions between Canada and the US.

This decline follows the collapse of negotiations on a range of Canadian goods, which led to President Donald Trump imposing 50% tariffs on Canadian exports worth approximately $20 billion, affecting around 5% of Canada's annual exports to the US.

The affected products include hockey sticks, agricultural products, wine, cement, clothing, furniture, cameras, and other consumer goods.

In response to these new levies, Canadian Prime Minister Mark Carney announced that his country would impose retaliatory tariffs starting September 8.