Canada-US Trade War Sparks Dollar Sell-Off

A new trade agreement between Washington and Ottawa has stalled, leading to a significant decline in the Canadian dollar's value against the US dollar.

The imposition of 50% tariffs on Canadian products exported to the USA, covering goods worth approximately $20-28 billion (5-7% of all Canadian exports), is seen as a major contributor to this weakness.

Citing unfair and economically harmful demands from the American side, Canadian Prime Minister Mark Carney has announced that Canada will retaliate with tariffs on US exports valued at a similar amount, targeting sectors such as steel, agricultural machinery, household appliances, electronics, and dairy products.