Canadian Dollar Falls as Trump Threatens Tariffs

The Canadian dollar fell on Monday after President Donald Trump threatened to raise tariffs on Canadian automobiles, car parts, and steel to 50% from January 1, 2027.

The loonie weakened by about 0.6% against the U.S. dollar, with a trading price of around 72.24 U.S. cents, down about 0.4% on the day.

U.S.-Canada trade negotiations broke down last week, and Canada has pledged to match Washington's measures with retaliatory levies targeting US steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.